Moscow. April 24. International rating Agency Fitch downgraded long-term ratings in foreign and national currency of Italy to “BBB” from “BBB+”, noting the slow economic growth in the country, increased political risks as well as the steady deterioration of fiscal indicators.
“Very high” level of debt in Italy makes the country vulnerable to sudden economic shocks that can trigger a default, according to Fitch.
The Agency experts noted that, while weak economic indicators the situation is aggravated by the unfavorable political landscape: at the end of last year the citizens did not support the government-proposed amendments to the Constitution that would simplify the adoption of legislative initiatives in the country.
According to the forecast Fitch, Italy’s national debt will increase to 132.7% of GDP in 2017, and by 2020 will be reduced to 129.3% of GDP.