Fitch Ratings, a London-based credit rating company, Friday revised Spain's sovereign credit rating outlook to stable from negative and affirmed long-term rating at BBB.

Fitch affirmed in a report Spain's long-term foreign and local currency Issuer Default Ratings (IDRs) and senior unsecured bond ratings at BBB.

IDRs provide an ordinal ranking of issuers based on the agency's view of entities' vulnerability to default. BBB refers to good credit quality. It indicates that expectations of default risk are currently low.

Fitch said in its press release that Spain has improved its policy track record in fiscal year 2012-13.

"Fiscal consolidation over that period has shaved 2.5 percentage points off the general government deficit/GDP ratio despite strong cyclical headwinds. The authorities have made significant reforms of the labor market, pension system, fiscal framework and financial sector. The pace of reform is likely to slow in 2014-15 as external pressures ease and 2015 elections loom, but the effort made to date should put the economy on a surer footing." said Fitch.

Fitch has also revised up its forecast for Spain's current account balance and now expects a surplus of 1.2 percent in 2013, reflecting the country's strong exports and competitiveness gains.

Spain's GDP grew 0.1 percent in the July-to-September period, after contracting for the previous nine quarter, according to data from its government released earlier this week.