MADRID: Standard & Poor’s (S&P) raised Spain’s debt rating on Friday by one notch to BBB+, lauding government labour market reforms that improved the country’s economic prospects, handing Prime Minister Mariano Rajoy a fillip a day after he called a general election for December 20.

Along with announcing the upgrade with a stable outlook, the agency raised its forecasts for annual growth in Spain in 2015 to 2017 to an average of 2.7 per cent, from 2.2 per cent in its previous forecasts made in April, reflecting the effects of labour and other reforms.