Italy's sovereign rating slipped by three points
06.10.2011 2387

Italy's sovereign rating slipped by three points

The international rating agency Moody's downgraded the credit rating of Italian government bonds by three positions at once from "Aa2" to "A2" with a negative outlook. Moody's explains its decision by the increased risks for long-term investments in the eurozone, which are caused by the growing uncertainty of investors in the creditworthiness of its countries. The agency says that "the market is not currently in favor of the euro." The Italian government has already accused the rating agencies of politicizing the forecasts, ITAR-TASS reports.

Moody's is concerned about economic growth forecasts in Italy due to structural problems in the eurozone and a global slowdown in the economy. The key issue that the agency points to is the so-called “political and economic risks of fulfilling tasks”. Moody's are not sure that the governments of the eurozone countries will be able to quickly find a convincing solution to the euro problem and bring it to life.

Due to the difficult situation in the eurozone, the Italian economy was very vulnerable, experts say Moody's. However, in their opinion, the country is still very far from declaring default on debt obligations.

Although Italy currently does not have a serious need for external loans and the level of loans in the private sector is rather low, Prime Minister Silvio Berlusconi has already said that the decision of the agency was expected, but "the Italian government will do everything possible to achieve its goals." According to the prime minister, the European Commission approved the savings plan developed by his government in order to eliminate the budget deficit by 2013.

Italy's foreign debt is one of the largest in the eurozone and is approaching 2 trillion euros. The Milan Stock Exchange is experiencing a decline in business activity with a decrease in the main index and maintaining the maximum gap between the value of Italian government bonds and German securities, which are considered the most reliable.

A decrease in Italy's sovereign rating will trigger a fall in the rating of Italian banks. If this happens, then it will be even more difficult for Italian banks to receive loans.

This summer, the 17 governments of the eurozone countries agreed to expand an economic stability fund designed to prevent default in the eurozone countries, but their decision has yet to be approved by the parliaments of all states. The delayed reaction of European politicians to the development of the debt crisis is due to the complex institutional structure of the European Union. This was indicated, in particular, by the head of the European Commission, Jose Manuel Barroso. This writes the "Russian newspaper".

The international rating agency Moody's downgraded the credit rating of Italian government bonds by three positions at once from Aa2 to A2 with negative ...

Latest News

Brunello Cucinelli launches its own line of fragrances

The Italian brand of clothing, shoes, bags and accessories Brunello Cucinelli continues to expand its range. After adding a line of glasses, the brand presents the first line of fragrances for men and…
29.03.2023 56

Ekonika relaunched its online store

The footwear and accessories chain Ekonika has relaunched its own online store operations with a new fulfillment provider, ProFashion Solutions.
29.03.2023 61

The Museum of Moscow and Trend Island department store organize a series of fashion events

In the Russian capital as part of the exhibition “House of Models. Image Industry” The Museum of Moscow and Trend Island department store will hold a series of events “Rethinking Fashion”. Theater and film costume designers, fashion editors, restorers and fashion researchers…
29.03.2023 61

CDEK.Shopping has included luxury sneakers in its range

CDEK.Shopping offers unique limited-edition designer sneakers from Nike, Adidas, Reebok, New Balance and Asics on its platform. Prices for some models reach up to 2,8 million rubles. Shoes are shipped from…
28.03.2023 195

Beyoncé ends her partnership with Adidas and starts with Balmain

American singer Beyoncé and German sportswear giant Adidas have announced the end of a partnership that began in 2018. As part of the partnership, Beyoncé relaunched her Ivy Park sportswear line and also designed…
28.03.2023 189
When you sign up, you will receive weekly news and articles about the shoe business on your e-mail.

To the beginning