Moody's Investors Service has retained Spain’s credit rating just above junk status at Baa3.

The international credit rating agency said Tuesday that it decided to maintain the rate since the European Central Bank has expressed intent to buy Spain’s state bonds and as the Spanish government has unveiled plans to pursue financial reform.

However, Moody’s warned that it could further downgrade Spain’s rating if it fails to show continuous efforts to stabilize its financial structure.

Last Wednesday, Standard and Poor’s downgraded Spain’s credit rating to BBB-minus.