S&P affirms Spain's sovereign rating, keeps negative outlook

Standard and Poor's Ratings Services affirmed Spain's sovereign rating at BBB+/A-2, citing the country's strong commitments to economic and fiscal adjustments, and said its outlook remained negative.

S&P's said it expected Spain's debt-to-GDP ratio to stay under 80 percent beyond 2015 as loans to distressed banks are likely to be eventually mutualised by the euro zone.

The success of Spain's efforts will largely depend on bold steps being taken by the euro zone to stem market pressure, the agency said, including financial support from European peers and the European Central Bank.

The country's rating could also be affected by persistent budget deviations in the 17 autonomous regions, it added.