Moodys cuts Italy sovereign rating one notch to Baa3 from Baa2 (now lowest level of investment grade); Outlook Stable
- The shift toward an expansionary fiscal policy suggests that, rather than falling over the coming years as was projected under the previous government's fiscal stance, Italy's public debt will instead remain around the current 130% of GDP, a level that makes Italy vulnerable to future domestic or externally-sourced shocks, in particular to weaker economic growth.
- It "remains to be seen" if the government's current policy plans "will be sufficient to materially improve Italy's weak track record on public investment delivery."