The 2017 outlook for Spanish regions is stable but fiscal consolidation pressures will continue and structural reforms may be deferred under the minority government, Moody's Investors cited by rttnews.

"Spain's improving economic prospects will help reduce budgetary pressure for the regions," Marisol Blázquez, a Moody's Analyst and author of the report, said.

"Spain's positive economic growth should gradually increase the regions' tax revenues and central government transfers, helping them to rebalance their budgets."