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Moody's affirms Italy ratings, changes outlook (to negative from stable)

Moody's changes outlook on Italy's BAA2 issuer rating to negative; affirms rating

(I'm guessing BAA2 is some sort of new, improved sheep? Yes, no?)

Headlines via Reuters:

  • Expects that Italy's debt burden will increase next year
  • Subdued growth outlook leaves little scope for any material reduction in Italy's very high debt burden over coming years
  • Italy's growth remains subdued and its growth prospects poor, and longer-term challenges to the government's fiscal strength persist
  • Popular rejection of constitutional reform in referendum poses threat to the achievement of reforms implemented to date
  • Over the nearer term, Moody's believes that the prospects of further fiscal slippage also weigh upon Italy's fiscal outlook
  • Diminished likelihood, following referendum, that govt will make further progress on structural economic, fiscal reforms needed
  • Italy's headline deficit is expected to be 2.4% of GDP in 2016, missing by some margin the target of 1.8% set in the 2015 stability programme
  • Negative outlook implies that the probability of an upgrade is low

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I'll be able to cut and paste some of those comments into posts on Australia ratings in coming months I reckon.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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