S & P promotes Renzi, but rating is one step above junk – BorsaInside

S & amp; P has confirmed Italy’s rating to” BBB “. Picture: Shutterstock

Standard & amp; Poor’s confirmed the rating of ‘ Italy to “BBB” (a step above the threshold junk, junk), with a stable outlook.

S & amp; P indicates in a statement that the Italian economic recovery is underway thanks mainly to external factors. The agency cites the improvement of the situation in the Eurozone, the weakening of the euro and the drop in oil prices.

S & amp; P predicts that the GDP Italian will grow this year by 0.4% and in the period 2016-2017 by an average of 1%.

S & amp; P Welcomes the approval of the new electoral law which “could improve the efficiency of the legislative process.” The Italicum together interventions in the labor market and the banks would demonstrate the government’s willingness to Matteo Renzi to continue the implementation of its reform program.

As for Public Accounts S & amp; P warns that the Constitutional Court ruling on the indexing of pensions threatens the achievement of a deficit / GDP ratio to 1.8% in 2016 and 0.8% in 2017.

S & amp; P noted that the stable oulook is based on the expectation of the implementation of further structural reforms and budget that could increase the potential for growth in the coming years.