According to the credit rating agency Moody’s, Italy’s creditworthiness is at risk. The country is the only country to receive a negative assessment from an authoritative credit rating agency and with this Italy risks falling to junk status in the rankings. This writes Bloomberg.
Italy is currently the only country with a Baa3 rating and a negative outlook, write Moody’s analysts Kelvin Dalrymple and Scott Phillips. “Slow growth and higher borrowing costs could further weaken Italy’s fiscal position.” According to analysts, Italy is one step away from junk status.
However, credit rating agencies S&P and Fitch are less negative about Italy. “Italy’s macroeconomic outlook for 2023-24 does not look as bleak as initially expected and Meloni has so far avoided a strong confrontation with the EU,” said one analyst.
According to Moody’s, Italy is particularly at “greater risk” in implementing crucial reforms in the country. Any downgrade to junk, analysts say, would not only hurt national pride but also make government bonds less attractive to investors.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
