Moody's downgrades four Italian regions in one fell swoop. During the night, the American rating agency announced the downgrade from Baa3 to Ba1 for Campania, Piedmont and Sicily. The assessment on Lazio, on the other hand, is reduced by two steps, from Baa3 to Ba2. Furthermore, the outlook is negative for all four Regions.
The downgrade “reflects growing fears about the financial position – explains the agency -. Resource cuts due to austerity are putting pressure on budgets, translating into increasing fiscal rigidity. Liquidity pressures have meanwhile contributed to the accumulation of arrears and trade debts.
