Farewell A rating, Dbrs Italy to BBB – BEND.it

The Italy withdraws officially in the series B. With the opinion of Dbrs, the only rating agency that still left our Country in the class of merit, the most high, the Italian sovereign debt has lost the last rimastagli and the Italian banks at risk of exit at a single stroke, from the group of those who, in the complex system of loans from the Ecb, “give in pledge” as little as possible to obtain funding from the european central Bank. The agency of canada, the smallest at the international level, has opted for the downgrade of a step of the rating of Italy, bringing it from a To BBB, with outlook. Dbrs is thus closer to those of Fitch, Moody’s and S&P, respectively, BBB+, Baa2 and BBB-, which had motivated their reviews with ratings similar t o those expressed today by the central bureau of Toronto. To weigh first, the uncertainty about the political capacity to continue, after the rejection of the constitutional reforms in the referendum of December, and the fall of the government Renzi, the reform process started. But to this adds also “the persistent weakness of the banking system in a period of growth fragile”. Despite recent plans to support the banking sector, observed Dbrs, the level of non-performing loans remains “very high” as to compromise the ability of the banking sector to act as a financial intermediary to support the economy. In this context, low growth has led to delays persisted in the reduction of the debt, leaving the Country more exposed to adverse shocks”. That the debt level remains still high and represents a violation of human rights in italy’s public finances, certified it to the rest of the Bank of Italy, which has measured in November, a further increase of the stock, equal to 2.229,4 billion total, € 5.6 billion more than in the previous month. According to the Mef, the Italian government bonds will not suffer from much of the decision of the Dbrs. The cut, lets go of the Treasure, will not have a signicant impact on the interest expenditure on public debt. Some effect may be felt on the Bot in the short term, but will be measured in the coming months. To be penalized could be, once again, own the banks, particularly under pressure. The loss of the last A in fact implies the loss of the first class in the relations with the Ecb. Asking for a loan to Frankfurt, the credit institutions must provide collateral, which may be, for example, the titles of the State. Evaluating the request, the european central Bank calculates the risk level of the assets that the banks give warranty based on the highest rating assigned by the four major rating agencies. So far, for Italy was then the bulwark of the last To assigned by Dbrs. But with the do wngrade, the Eurotower will modify the judgment and, consequently, for the same amount of loans, Italian banks are at risk of having to introduce the goods under warranty for a higher amount. Finally, there is the impact on the “credibility” of the Italian system. Painstakingly, also thanks to tax policies advantageous, the government has tried to attract foreign investment in our Country. Now, many large institutional investors might opt for other destinations, considered the most reliable.

Here are the ratings of the main agencies, international financial on Italy:

Ratings Outlook
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S&Poor’s BBB – stable
Moody’s Baa2 stable
Fitch BBB+ stable
Dbrs BBB stable