Best Italia Economy Portal: Rating Italy, arriving updates. Confirmed by DBRS

Saturday, October 11, 2014

Rating Italy, arriving updates. Confirmed by DBRS – The Republic

MILAN – The rating agency DBRS has confirmed its “report card” Italy: The outlook remains “negative” with a rating of A -low ( What are the rating ). This was stated in a note, pointing out that the confirmation reflects the progress in fiscal consolidation. If DBRS had cut its rating would become more expensive for banks to refinance with the ECB Italian BTP using as collateral. As is now taken for granted by the government, for analysts Italy will remain in recession well into 2014, with the GDP will contract by 0.3%. The product is expected to rise by 0.5% in 2015; according to the agency which is based in Toronto, the government’s structural reforms to increase growth in the coming years, but “the potential for growth in Italy remains weak.” The negative outlook reflects DBRS assessment of the risks from fragile economic outlook – with a recovery that “slow to materialize” – and the large debt. “With the current growth estimates, the dynamics of Italian debt remains a concern,” writes DBRS, explaining that the margins of the budget for the country appear to be “heavily constrained.” On the political front DBRS recognizes the acceleration Renzi imposed by the government on the issue of reform but believes that, despite the government’s intentions are defined as “encouraging”, the risks related to the implementation of these initiatives are “significant.”

Who are the rating agencies

A brief awaits the verdict of Moody’s, the first of the major rating agencies to release his update on the situation in Italy. Initially, he should give his report card before the summer, but then decided to stall to see what he would do – in terms of economic policy – the tandem Renzi-Padoan. The latest decision of the American agency was to confirm the rating to Baa2, improving the outlook (ie, the outlook for the economy and, indirectly, of the “report card” of the country) from negative to stable. The move was made just at the turn of the change of government, with the handover by Enrico Letta Renzi. Meanwhile, as noted, the prospects of the country have changed: now the government has certified the document of economics and finance a new year of recession (-0.3% GDP mark in 2014), while the public debt is seen climbing and the deficit will be exploited to the maximum permitted by the terms Ue (3%) to insert in the Law of Stability expansionary measures, beginning with the confirmation of the 80 euro paycheck that cost the state 10 billion.

The judgments of rating agencies Eurozone

Then it’s up to Fitch on October 24th and then to Standard & amp; Poor’s, December 5. This update is particularly expected, because the agency holds the beautiful country in Use “negative outlook” and what might assume – if analysts judge the situation of public finances deteriorated tricolor – a cut of the vote.

Meanwhile, Standard & amp; Poor’s has issued the rating assessments of the Fund Salvastati, about France and Finland. The agency has revised the outlook to negative for the corresponding parameter in the wake of the EFSF decided tonight to France. The rating of the fund ‘bailout’ was instead confirmed to ‘AA / A-1 +’.

As for France, confirms the rating of ‘AA’, but revises downward the outlook to ‘negative’ from ‘stable’. “The revision in outlook reflects the reduction of the area of the budget available to the Government of France,” said Standard & amp; Poor’s, noting that the deficit-French GDP is expected to average 4.1% in 2014-2017, compared with an average GDP growth of 1.2% over the same period of time. The deficit in 2014 is expected to be 4.4% of GDP. The GDP will grow by 0.5% this year instead, then accelerate to 1.1% in 2015 and 1.5% in 2016-2017.

And change for Finland: Standard & amp; Poor’s cut its rating from ‘AAA’ to ‘AA +’. The outlook is stable. This was communicated by the agency explaining that the “downgrade reflects an understanding of the risk that the Finnish economy could experience a prolonged stagnation.”