Italian rating forecast downgraded as a result of the new budget policy


Credit rating agency S&P (Standard & Poor’s) has revised the outlook for the creditworthiness of Italy. According to S&P, the economic and fiscal plans of the new Italian government are bad for the economic growth of the country.

The negative outlook is a precursor to a possible write-down of the sovereign credit rating of the country. This credit assessment indicates the extent of the risk that a country or financial institution can no longer meet the payment obligations. If the risk is high, it becomes more difficult and, above all, more expensive to borrow money.

Italy  still holds the BBB/A-2 rating for the time being.  Earlier this week, Moody’s, another rating agency, lowered the rating for Italy because of concerns about the rising budget deficit in the country.

For comparison, the Dutch rating was maintained on AAA on Friday by another rating agency, Fitch. The prospect for the Netherlands is also stable. Fitch was also not affected by the assessment of the United Kingdom.

By: Abaigael Schlomski

Abaigael Schlomski is an accomplished economist and financial journalist with over a decade of experience in the industry. He is a regular contributor to EconomicInform, where he provides in-depth analysis and expert commentary on the latest economic trends and events. With a keen understanding of the financial markets and a talent for breaking down complex economic concepts for a general audience, Maurice is a trusted and respected voice in the field.

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