After the vote that led to ungovernability in the Senate, the collapse of the Stock Exchange and the soaring spread, from Moody's comes a clear warning to Italy: we are at risk of downgrade. According to the rating agency, the current situation could make a second electoral round necessary in our country, which in any case may not be decisive.
“Instead of improving the visibility of the country's political direction – reads a note from Moody's -, the recent elections in Italy have increased the risk that the phase of reforms started by the Monti government could be suspended, if not completely freeze”.
Furthermore, the uncertainty in Italy, the third largest European economy and the largest bond market, could infect other weak economies in the area such as Spain e Portugal, “potentially rekindling the euro area debt crisis".
Moody's judgment on Italian debt is Baa2, two levels above the junk level. Standard and Poor's and Fitch, the other two global sisters of the rating, rate our country respectively with BBB+ and A-, in both cases three levels above the dreaded "junk" status.
