FRANKFURT (Dow Jones) – The Fitch rating agency has lowered its prospects for Italy's creditworthiness from negative to stable. The BBB assessment was confirmed. The credit guards fear a lax fiscal policy after the formation of a new government coalition, making the country with a very heavy debt burden even more vulnerable to potential shocks.
The downside risks have increased since the last review of the rating in March. This was partly due to the nature of the new government, with considerable political differences between coalition partners and contradictions between the high cost of new promises to the people and the goal of reducing government debt.
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DJG / gos
(END) Dow Jones Newswires
31 August 2018 16:40 ET (20:40 GMT)