Fitch has said there is no reason to change its credit rating for Spain despite the recent 2013 budget presentation, the latest spending cuts, and the bank recapitalisation plans.

The US rating agency has maintained its 'BBB' rating for Spain with a 'negative' outlook after reviewing the latest announcements:

2013 budget: Fitch does not expect Spain to reach the deficit target of 4.5%. It expects the deficit to come in at 5% with the main problems being lack of growth and unemployment.

Creation of an independent fiscal agency: Fitch believes that it should help establish medium-term credibility although the key factor to credibility will be the ability to reduce the deficit.

Bank recapitalisation: The €59.3bn capital short-fall estimated by Oliver Wyman is close to Fitch's own estimate, which prompted the ratings downgrade in June. Fitch complains of the lack of details about the ESM and emphasises that a direct recapitalisation of banks would be positive for Spain's rating.

Financial conditionality: Last week's measures were probably designed to satisfy conditions for a full bailout before it is actually requested, says Fitch, although such a plan must be approved by all creditor governments and would probably require IMF participation.

"Our rating assumes that, should it be needed, support will be requested in a timely manner to avoid unnecessary strains on sovereign liquidity," Fitch concludes.

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