Fitch reported that Italy's credit rating has been reduced from “BBB” to “BBB-” and that its outlook is “stable”.
In a statement from the international credit rating agency Fitch Ratings, the decrease in Italy's credit rating reflected the impact of the global epidemic on the country's economy and financial situation.
In the statement, it was noted that the credit rating of Italy's long-term foreign currency was downgraded from “BBB” to “BBB-“, and its outlook was determined to be “stable”.
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In the statement that the Italian economy is expected to contract by 8 percent this year, it is stated that if the Kovid-19 epidemic is taken under control in the second half of this year, a relatively strong economic recovery may occur in 2021.
The statement said that if there is a second wave in the outbreak and the isolation measures start again, the economy will weaken more this year and next year.
It was noted that the European Central Bank's (ECB) asset purchases will facilitate the financial measures taken against Italy's Kovid-19 outbreak, and this will also reduce the refinancing of risks by keeping borrowing costs low in the short term.