Moody’s holds Spain rating at Baa3

WASHINGTON—Moody’s held Spain’s debt rating Tuesday at Baa3, one step above “junk” grade, but assigned Madrid a “negative outlook,” maintaining a threat to downgrade the country if conditions deteriorate.

Moody’s cited the European Central Bank’s willingness to buy Spanish government bonds to stabilize its borrowing rate as well as the government’s commitment to implementing fiscal and structural reforms necessary to improve its finances.