fxs_header_sponsor_anchor

News

Moody's places Italy on downgrade watch, Baa2 rating threatened

In the run-up to Italy's weekend political strife, Moody's placed Italy's Baa2 rating on downgrade watch, citing a "material weakening in Italy's fiscal strength, given the fiscal plans of the new coalition government." Moody's also noted that structural reform efforts underway are threatened by the new Italian government coalition.

The weekend's developments in Italy are unlikely to spark much confidence in Moody's though, following the Italian President's rejection of the coalition party's nominee for Economy Minister, a vocal critic of the Euro. Italy's government has failed to be formed following March's election, and if the Italian President selects an unelected technocrat to the economy position it could spark a run of re-elections, further gumming up the Italian political system and garnering support for the far-right and Euro-sceptic government coalition.

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.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.