We maintain the credit rating of the Autonomous Community of Madrid at A- with a Negative outlook.
Madrid is the first economy within the regional group in terms of gross domestic product. With a population of 6.7 million inhabitants and a GDP of 216,527 million euros at the end of 2020. The GDP per capita is 32,048 euros at the end of 2020.
The rating is based on the maintenance of the socioeconomic and financial risk profile with respect to the previous review. Despite the impact of the crisis on the Madrid's economy (-10.3%) and the increase in the unemployment rate (13.5%), we expect the reactivation of the economy in 2021 & 2022 at a pace of 5.1% & 5.8% respectively. The maintenance of a solid publics finances position is another key point. However, our rating is constrained by the challenges related to population aging and the future settlements of the advance payments of the fiscal years of 2020 and 2021.