Moody's: Ratcheting-up of tensions has negative credit implications for Spain

"Escalation of conflict over independence vote is negative for Spain, unclear for Catalunya‍," said Moody's Investors Service, as per Reuters reports.

Key quotes:

• Ratcheting-up of tensions has negative credit implications for Spain as it complicates process of legislating policy & 2018 budget‍
• Probability of Catalan independence materializing remains low
• Referendum does not immediately affect support that Catalunya has been receiving from Spanish central government since 2012
• Ratcheting-up of tensions in Catalunya has negative credit implications for Spanish sovereign because it complicates process of legislating policy