Fitch confirms creditworthiness of Italy

For the time being, Italy holds the BBB rating at Fitch, with a negative outlook.

25.Feb.19 8:52 AM
By Shawn Highstraw
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Fitch confirms creditworthiness of Italy

Fitch credit rating agency has not penalized Italy's creditworthiness. According to the company, there is a lot of political uncertainty in the South European country lately. The Italian banking sector is also weak, but there are also positive points. For example, the pension system of the Italians is quite sustainable, according to the rating agency.

In late January came out that Italy in the end of last year in a recession has landed. The populist government, which took office in Italy on 1 June, is pursuing an expansionary spending policy. Among other things, extra money is being made available for the less fortunate, while the retirement age is also being reduced.

For the time being, Italy holds the BBB rating at Fitch, with a negative outlook. Many connoisseurs thought it was doubtful in the run-up to the report whether Fitch would resort to a write-down of Italy. But that does not detract from the fact that there are indeed concerns about the prospects for the Italian economy in the study.

The current coalition in Rome expects 1 percent economic growth this year, while Fitch does not go beyond 0.3 percent growth in 2019. Lower economic growth makes it more difficult for the government to make agreements with the European Commission about, among other things, the reducing the budget deficit.

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