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Fitch Rating confirm Italy at BBB and leaves outlook unchanged also (at negative)

Some late news from after hours in the US Friday, on Italian sovereign debt ratings from Fitch.

  • Fitch affirmed Italy’s credit rating unchanged at BBB
  • maintained its negative outlook

Fitch:

  • This week’s political developments reinforce our assessment at the previous review that the government was unlikely to see out a full term and there is an increasing risk of an early election from the second half of this year
  • There are downside risks to the fiscal outlook should a future government opt to disengage from EU fiscal rules and be more willing to risk financial market instability

That’s a bit of respite for Italy as political instability rises, with the likelihood of early elections soon. Prime Minister Giuseppe Conte is facing a no-confidence motion in Parliament from coalition member Matteo Salvini. Italian instability is a negative for the euro, this lifting it at least to some extent. 

Salvini:

ForexLive

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