Standard and Poor’s revises downwards theoutlook of Italy to ‘stable from’ positive. This was stated in a note by the rating agency confirming the assessment for Italy ‘BBB’. “On 21 July the President of the Republic Sergio Mattarella dissolved parliament after the resignation of Prime Minister Mario Draghi ”. These developments could “shift” focus from key reforms and weigh further on confidence and on the growth at a time of high uncertainty and rising inflation ”. He affirms this by explaining his decision to revise Italy’s outlook downwards to stable.
The stable outlook reflects i risks that a slowdown or reversal of reforms ”could have for the Italian economy and public finances, he says Standard and Poor’s . “The review also reflects the high inflation and the risks at energy supplies of Italy ”, specifies the agency. “We could raise the rating if the next government” continues along the path of reforms and continues with the gradual fiscal consolidation. Ratings could come under pressure if the Italian economy slides into a protracted recession. One inflationary shock prolonged, – the agency’s statement continues – together with weak growth, could represent a risk for Italian public finances and, consequently, for ratings ”.