Moody’s affirmed Italy’s rating at Baa3 and raised the outlook from “negative” to “stable”.

On Friday evening, the rating agency Moody’s updated its assessment of Italian government bonds: it confirmed the Baa3 rating, but raised the outlook – that is, the forecast of their future performance – to “negative ” to “stable”. In a note from the agency has explained that the decision “reflects a stabilization of the outlook regarding the country’s economic strength, the health of its banking sector and the dynamics of public debt”.

The Baa3 rating it’s the lowest among those of recommended investments: the immediately lower category, Ba1, is already among those of government bonds defined as “junk”, in which the agency advises against investing. Many funds’ rules require them to sell securities when they fall below the Baa3 category. Moody’s has assigned Italy the Baa3 category since 2018, but in the last few hours there has been a lot of talk about the possibility that the rating will be revised downward this year, which did not happen.

Economy Minister Giancarlo Giorgetti it was said satisfied with Moody’s assessment, saying it confirms how Giorgia Meloni’s government “is doing well for Italy’s future.”

Source: ilpost


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