That’s Fitch’s new estimate of Spanish debt levels. Guess which way they were revised?
Debt To Reach 95%: The level of gross general government debt (GGGD) is now expected to peak at about 95% of GDP in 2015 compared with a peak of 82% in 2013 projected by Fitch Ratings at the time of the last formal review of Spain‟s sovereign ratings on 27 January 2012. The upward revision to Fitch‟s projections for GGGD/GDP ratio was one of the drivers of the downgrade of Spain‟s sovereign ratings to „BBB‟ with a Negative Outlook on 7 June 2012.
Bank Recap and Arrears: About one-quarter of the increase in projected GGGD/GDP ratio is due to the doubling of Fitch‟s baseline estimate of the fiscal costs of bank recapitalisation from EUR30bn to EUR60bn (6% of GDP).