Moody's raises outlook on banks, Italy will return to growth

(ANSA) - MILAN, MARCH 25 - Moody's revises upward the outlook on the Italian banking system, improving the outlook from "negative" to "stable" on the "expectation that the Italian economy will return to growth this year after the strong contraction produced by the coronavirus in 2020 ". According to the rating agency "the sector will benefit from lower IFRS9 provisions on expected credit losses compared to last year, although adjustments will remain high". For Moody's "problem loans will increase, especially after the moratoriums linked to the coronavirus end" even if "the continued support of the government in the form of guaranteed loans, together with the continuation of the disposals of NPLs, will partially offset the deterioration in asset quality". (HANDLE).