S&P slashes Italy`s debt rating
Baku, September 20 (AZERTAC). Standard & Poor`s Ratings Services on Monday slashed Italy`s sovereign-debt rating by one notch and kept its outlook on negative, citing the euro-zone's third biggest economy's weak economic growth and fragile government coalition.
S&P now rates Italy`s long-term debt at A and short-term debt at A-1, its outlook is still negative.
The ratings agency said in a release that Italy`s fragile governing coalition and policy differences in parliament will likely continue to limit the government`s ability to respond to the challenging domestic and external macroeconomic environment.
"In our opinion, the measures included in and the implementation timeline of Italy`s National Reform Plan will likely do little to boost Italy`s economic performance, particularly against the backdrop of tightening financial conditions and the government`s fiscal austerity program," S&P said.
The downgrade would add to concerns of contagion in the debt- stressed euro zone, according to analysis.
Investors have expected Moody`s Investors Service become the first ratings firm to cut Italy's ratings. Moody`s on Friday maintained its negative review on Italy`s sovereign debt rating, saying it will likely need another month to evaluate the country`s credit-worthiness.
Moody`s rates Italy at Aa2, higher than S&P
Other news in this section
