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Last night the rating agency Standard & amp; Poor’s downgraded Italy by lowering its rating from BBB to BBB -.
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We are on the same level of many emerging countries (Morocco, Azerbaijan, etc.), And for a developed country that does not is normal.
The last change to Italy dated back to July 2013, and yet still a downgrade by S & amp; P.
Yesterday, the agency said that while acknowledging that “the government is gradually moving towards the start of some important reforms”, believes that “a sharp increase in the debt, accompanied by a perennially weak growth and low competitiveness, is not compatible with a BBB rating” according to their own criteria .
While noting some progress with the Jobs Act, are of the opinion that “the measures envisaged will not create jobs in the short term. As a result, the already high unemployment rate could worsen until they arrive a sustainable economic recovery “.
In addition, in relation to the period 2014-2017, have lowered their average estimates of real GDP growth from 1% to 0.5%.
An average economic growth of 0.5% until 2017, especially knowing the starting point, would represent a very disappointing recovery.
Here we look at the updated position of the ratings we were assigned the most famous agencies (Moody’s, Standard & amp; Poor’s and Fitch):
All three judgments are quite close to the category speculative grade.
A brief aside: some operators define indiscriminately all the bonds in that category as’ junk ‘, regardless of the position which they occupy in the same.
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