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Moody's was downgraded to Italy.
The credit rating agency Moody's announced on Friday that she had downgraded the Italian public credit, citing her concern over the stabilization rather than the reduction of the Italian public debt in those countries. years to come. She moves on to something else as Brussels asks for "clarification" regarding the draft budget for 2019 presented by the Italian government to the European Commission.
The lender goes from Baa2 to Baa3, which means that Italy is at the last level before holdings in Italian state securities cease to be considered an investment and fall within the range of speculative positions of garbage in the terminology of the rating agencies.
Moody's however matched this deteriorating outlook with a positive outlook, meaning that it does not intend to devalue the credit managed by the Italian state over the next six months.
"The public debt-to-GDP ratio is expected to stabilize at the current level of 130% of GDP in the coming years, rather than starting to fall as Moody's has been forecasting to-date," he said. he declares.
He also noted that public debt was even more problematic because of weak growth prospects.
The fiscal and economic measures projected by the government "do not constitute a coherent reform agenda that could solve the problems of disappointing growth," according to Moody's badysts.
The Chamber adds that, in the short term, "the fiscal stimulus package will bring growth more limited growth than the government alliance" in Rome.
Italy's draft budget for 2019 predicts a deficit of 2.4% of GDP, which is far from the 0.8% promised by the previous center-left government.
The Italian divergence is "unprecedented in the history of the Stability and Growth Pact," the Commission said in a letter asking the Italian government to submit its own comments by Monday 22 October.
Brussels believes that there is a risk of "serious breach" of European rules, which could result in the rejection of the Italian budget – something that has never happened in the history of the EU. EU.
La Repubblica: meeting the Cabinet
Following the announcement of the deterioration of Moody's Italian public loan to Baa3, sources close to the Italian government, according to the electronic edition of the newspaper La Repubblica, according to which the council of ministers could decide to change the draft budget for 2019.
The main change, according to the same sources, would be to reduce the deficit / GDP ratio in 2019 from 2.4% previously forecast to a level close to 2% below.
The same sources indicated that the downgrade of the loan granted by Italy to Moody's was "expected".
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