Moody's cut Italy's rating from A2 to A3, with a negative outlook. The American agency also revised downwards the ratings of Portugal (from Ba2 to Ba3), Malta (A2 to A3), Spain (A3 to A1), Slovakia e Slovenia (both from A1 to A2). In all cases the outlook is negative. With regard to France, UK e Austria, Moody's has only revised the outlook (turned negative), while maintaining the triple A rating unchanged.
The decision, as stated in the press release, reflects "the growing financial and macroeconomic risks deriving from the Eurozone crisis and how the exacerbation of these risks creates specific problems for the various countries". According to the agency, "European macroeconomic prospects are increasingly weak, a fact that threatens the application of the austerity measures approved in individual states and the structural reforms necessary to promote competitiveness".
The decision to cut the ratings of the various countries was therefore taken in the light of "the uncertainty about the financial conditions of the countries in the coming quarters and the consequent impact on their solvency".
As for Italy, the "uncertainty on the prospects of the Eurozone regarding the institutional reforms of the fiscal and economic framework" weighed above all, combined with the fact that the weakness of the European economic outlook "complicates the application of austerity programs and structural reforms necessary to promote competitiveness".
Added to this is the fact thatthe measures introduced by the government to promote economic growth will take time to produce results, however difficult to predict in the current state of things".
Another reason that led to the Italian downgrade is that "The Italian government may fall short of its consolidation objectives and prove unable to reduce its large public debt“. However, Moody`s admits that the fiscal consolidation plan launched by the Monti government and the efforts in the context of economic reforms "have contributed to maintaining a primary surplus".
