Fitch affirms Italy’s rating at ‘BBB’ with negative outlook



by   |  VIEW 595

Fitch affirms Italy’s rating at ‘BBB’ with negative outlook

On Friday, the 7th of February 2020, the NY-based American credit rating agency, Fitch Rating Inc., often contemplated as one of the top three credit rating agencies alongside Moody’s and Standard & Poor’s, had affirmed Italy’s sovereign credit rating at ‘BBB’ with negative outlook addressing to a higher level of government debt, uncertainties in economic policy alongside a lower trend in economic growth.

In point of fact, Fitch’s Friday’s (February 7th) Italian sovereign credit rating at BBB with negative outlook meant the Eurozone economic major’s bonds could still be considered as Investment grade, however, further downgrading would lead to a lose of its investment grade status.

Meanwhile, referring to Italian Government’s inability to generate a feasible growth framework and financial strategy, Fitch said in a statement on Friday (February 7th), “The high degree of political fragmentation makes it very difficult for the Italian government to develop a credible growth and fiscal strategy to reduce the stock of public debt.

” Apart from that, the NY-based American credit rating agency had also added in its Friday’s (February 7th) statement that Italy’s net external debt outlook appeared to be improving, however a weaker asset quality in the country’s banking sector and financials would likely to weigh on the country’s credit rating over the coming years.