Fitch cuts Italy's credit rating to BBB from BBB+

Posted April 21, 2017 5:11 pm by Comments

Fitch Ratings on Friday downgraded Italy’s long-term foreign- and local-currency credit ratings to BBB from BBB+, citing the country’s tepid economic growth, increasing political risks and “persistent track record of fiscal slippage.”. The ratings agency said the country’s failure to bring down its “very high” level of government debt has left it prone to unexpected economic shocks that could instigate a default. Weak economic fundamentals have been exacerbated by the fractious political landscape; late last year, Italians voted down a constitutional referendum that would’ve streamlined the legislative process in the country. The ratings agency projected that the country’s debt load will swell to 132.7% of gross domestic product in 2017, before declining to 129.3% in 2020. Italy’s economy has been plagued by persistently low growth and a banking system that harbors one of the highest percentages of non-performing loans in Europe. The European Commission in late 2016 waived its rules

...[Read the Rest] Source: Marketwatch

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