Market Commentary and Intraday News
Fitch downgrades Italy on election uncertainty
531 days ago
|Free Managed Futures Guide. 3 things you should know prior to investing. This informative guide provides details on:|
- Lurking Risks: How your managed futures investment may really respond to large market moves.
- Performance Reporting: Are the numbers actually real and do they give the whole story?
- The Fee Structure: What are the fees? And who gets paid what?
Click Here for this free guide.
(AP:MILAN) Fitch Ratings Agency has downgraded Italy's credit rating to BBB+ from A- with a warning of a further downgrade, citing the uncertainty created by February's inconclusive elections.
Fitch on Friday said the failure to come up with a clear winner made "it unlikely that a stable new government can be formed in the next few weeks," thereby harming prospects of further reforms.
The rating agency said Italy's recession was one of the deepest in Europe, with an expected contraction of 1.8 percent in 2013. Fitch added that the size of the country's debt as a proportion of its economy is expected to peak at 130 percent this year, higher than an earlier estimate of 125 percent.
Talks on forming a new government aren't expected to begin before March 20.
Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.