Moody’s confirmed Italy’s rating. The indicator that determines the reliability and sustainability of the public debt national. Moody’s has in fact completed the periodic review of the rating of the Italian Republic without announcing any action. All in all a positive figure given that the Covid pandemic has further magnified the already significant Italian public debt.
The agency merely reminds in a note that the Baa3 classification attributed to Italy is justified by the “economic strength” of the country and reflects “a large and diverse economy and low private sector debt, but also weak economic performance and major structural challenges, including low productivity, an inefficient administrative and judicial system and large regional divergences “. From a fiscal point of view, Moody’s highlights”the very high public debt that will increase further due to the pandemic shock “.
A Baa3 rating places Italy among the countries considered among those a “Medium quality, medium default risk” with “Sufficient ability to meet short-term commitments”. A level that places us a step above the so-called “junk bonds”, that is, those deemed to be at investment risk.
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