Soho
Italy's sovereign rating slipped by three points
06.10.2011 2241

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 ...
5
1
Rating

Latest News

Milan MICAM recorded 35 visitors

A major exhibition event was held in Milan, bringing together international professional exhibitions MICAM, Mipel, TheOneMilano and HOMI Fashion&Jewels. The total number of guests of the exhibition project, which took place from 18 to 20 September 2022 in…
26.09.2022 66

Furla presented a new clutch at Milan Fashion Week

Furla discovered the infringement of women's rights in the music scene and released a protest limited collection of bags. The collection is based on a new model of the Metropolis cross-body clutch bag…
25.09.2022 89

US retail shoe prices up 8% in 5,7 months

According to the Footwear Distributors and Retailers Association of America (FDRA), shoe prices increased by 2022% in the first eight months of 2021 compared to the same period in 5,7. This growth is the most significant in recent…
25.09.2022 86

Salvatore Ferragamo changed the logo

The Italian luxury shoe and accessories brand Salvatore Ferragamo, following the latest trend of high fashion houses, has shortened its name, leaving only the name of its founder in the logo…
23.09.2022 217

Geox presented a new collection at Milan Fashion Week

The Italian brand Geox, known for its technological "breathable shoes", continues to develop and strengthen the direction of elegant shoes in design. In the women's collection of the spring-summer 2023 season, which was presented at Milan Fashion Week,…
23.09.2022 210
When you sign up, you will receive weekly news and articles about the shoe business on your e-mail.

To the beginning