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S&P revises Italy's sovereign outlook to stable; affirms rating

Credit: REUTERS/Jennifer Lorenzini

Standard and Poor's on Friday revised Italy's sovereign outlook to stable and affirmed its long- and short-term credit rating at "BBB/A-2".

S&P outlook details

Oct 23 (Reuters) - Standard and Poor's on Friday revised Italy's sovereign outlook to stable and affirmed its long- and short-term credit rating at "BBB/A-2".

The ratings agency saidItaly's outlook balances consequences of the coronavirus pandemic on public finances against the extraordinary policy response by the European Central Bank.

Despite the economic difficulty, Italy's borrowing costs are at record lows, thanks to the ECB's huge bond-buying program aimed at supporting the euro zone economy.

However, S&P said it anticipates Italy's gross domestic product to not return to 2019 levels until 2023 due to the COVID-19 impact on the economy.

(Reporting by Ahmed Farhatha; Editing by Maju Samuel)

((ahmed.farhatha@thomsonreuters.com; within U.S. +1 646 223 8780, extn. 6568; Reuters Messaging: ahmed.farhatha.thomsonreuters.com@reuters.net))

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