POINT 2-Italy, DBRS raises outlook to stable from negative, confirming A … – Reuters Italy

(Adds details, analyst comments DBRS)

MILAN, March 27 (Reuters) – DBRS has improved the trend, or the outlook on Italy’s sovereign rating to ‘stable’ from ‘negative’, confirming the assessment A (low).

Now all four agencies followed by the ECB (S & amp; P, Moody’s, Fitch and DBRS) have a stable outlook on the rating Italian in a sort of end point of the long descent phase of the creditworthiness of the country triggered by the financial crisis.

“There are marginal improvements on different areas, but taken together allow us to raise the trend,” says Reuters Giacomo Barisone, responsible sovereign rating by DBRS.

The DBRS press release explains that the stabilization of the outlook reflects three factors: the “robust” sustainability profile debt, favored by low financing costs and the expansionary measures by the ECB; the “progress” made by the government in the implementation of a broad structural reform agenda; the recent “strengthening” in terms of the share of the banking sector.

GOVERNMENT MORE EFFORT INCISIVE

“With all the caveats about the long lead time for implementation, there are now tangible signs like the Jobs Act or other interventions, such as electoral reform and constitutional reforms or initiatives to improve access to credit for SMEs: how to recognize the effort by the government to be more effective, “said Barisone.

Barisone then explains that “following the Aqr, as expected, Italian banks have made a considerable effort to strengthen the capital.” But warns that “there remains the problem of the stock of suffering, which is still high and we expect to stabilize only slowly”, while acknowledging that “the government is trying to find a systemic response to the problem, there is definitely a greater determination to deal with it. ” More …