We maintain our credit rating on the Community of Madrid at A- with a Negative outlook.
Madrid is the leading economy within the region as a whole in terms of gross domestic product. With a population of 6.7 million inhabitants and a GDP of € 240,219 million at the end of 2019. The GDP per capita is 32,048 euros at the end of 2020. The rating is based on the maintenance of both socioeconomic and financial risk profile compared to the previous review. Despite the impact of the COVID shock on the Madrid regional economy (-10.3%) and the increase in the unemployment rate (12.5%) in 2020, the Community of Madrid closes 2021 with a good growth figure (+6.5%, a point and a half above the national average), accompanied by an improvement in the unemployment rate (11.55%) which, if this trend continues in 2022 and 2023, would represent an important strength for the region's economy. Additionally, it has solid public finances and a solid institutional framework. However, our rating is constrained by the increase in the level of indebtedness still maintained in 2021 (14.8%), the challenges related to population aging, as well as all the uncertainty existing at the international level and the increases in the inflation rate derived from this.