Moody's has revised Italy's outlook to negative from stable
|Moody's has rated Italy down to BAA2 as reported recently on Reuters:
Here are some of the comments on 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
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.