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Moody's: Italy's prospects are uncertain without Draghi

2022-08-05T21:30:33.773Z

The agency cuts the Italian outlook to negative. Mef: questionable review, confident in the Pnrr (ANSA)



The Moody's agency reviews down the prospects of Italy to negative from stable.

This was stated by Moody's in a note confirming the Baa3 rating.

(HANDLE).

"The end of the Draghi government and early elections on 25 September 2022 increase political uncertainty" in a difficult context.

This was stated by Moody's in a note, explaining the reason for the change to 'negative' in the outlook on the Italian rating.

On Italy there are "material risks on the growth prospects due to the uncertainty in the execution of the NRP and energy supplies".

Moody's said in a note, underlining that a "return to political uncertainty" and hitting the objectives of the NRP would leave Italy "more exposed to investor confidence at a time when the government needs investors to play a role. "greater in the Italian debt.

Moody's "does not believe that the ICB" recently announced by the ECB "will be a panacea against rising yields in all circumstances".


Moody's decision to revise the outlook on the rating assigned to Italy "appears questionable".

Mef writes it in a note.

"Even in a time of economic slowdown and geopolitical tensions at the international level, accompanied by the uncertainty regarding the political elections of 25 September, Italy's economic conditions do not justify this orientation".


"Early elections are not an anomaly in the context of European democracies. We remain confident that the implementation of the PNRR, the policies to boost investment and innovation and the energy security strategy will continue quickly after the next elections."

This was underlined by the Mef, commenting in a note on Moody's surprise decision to revise the outlook on the rating assigned to Italy.

Source: ansa

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