• Sat. Nov 27th, 2021

S&P confirms Italy rating at ‘BBB’, outlook raised

Byeditorial

Oct 22, 2021

S&P Global Ratings kept Italy’s rating unchanged at ‘BBB’ but revised its outlook to ‘positive’ from ‘stable’, motivating the decision with the estimate of “a strong recovery driven by investments in 2021 and 2022 , which will bring Italian GDP back above 2019 levels one year ahead of our forecasts “. For the agency “the vast majority of the Draghi government should guarantee the implementation at the end of 2021 of the 51 goals and objectives included in the ambitious National Recovery and Resilience Plan”. 8% of GDP compared to the 9.4% target set by the government, as revenues continue to exceed forecasts. Hence the decision to hike “following the clear strengthening of the commitment to reforms in favor of growth and the positive effects that greater growth will have on public finances”. For 2021, Italian real GDP growth should reach 6 %, followed by + 4.4% in 2022, writes the S&P agency, observing how the driving factors of this “sustained growth” – which can return “to figures not seen since 1973” – are high vaccination rates, high private savings, improved business and household confidence, generous EU funds and recovering tourism. On the public accounts front, however, the agency does not foresee a return to a primary surplus until 2025, while after the deficit of 8.8% estimated for this year, the deficit is expected to fall to 5.8% in 2022. S&P predicts that net public debt at the end of 2021 will stand at 144.8% of GDP (excluding the EFSF guarantees) but notes that “despite the increase in the debt ratio, interest-related expenditure continues to decline “: if in 2012 it was over 5%, in 2021 it is expected to be 3.2% and” considering that the Italian Treasury continues to refinance the debt maturing at around 0.1%, well below the average rate of 2 , 35% paid on the total debt, we believe that the interest expenditure on GDP will fall below 3.0% by 2022 “. Risks for Italian public accounts from disbursement for MPS “Complex discussions are underway to allow the acquisition of Monte dei Paschi di Siena by another large Italian bank” but “an agreement would almost certainly require a significant capital injection by of the Italian State, representing a potential tax risk “, writes the S&P agency, pointing out the possible negative impact of a public grant linked to the Mps operation. For the banking sector, the agency reports that “the decline in the levels of non-performing loans, together with the monetary policy measures of the ECB, including towards the banking sector, has supported monetary transmission in Italy” and recalls how “the Italian government is in favor of further consolidation in the financial sector “.

One thought on “S&P confirms Italy rating at ‘BBB’, outlook raised”
  1. editorial says:

    Download John Hart – Checkmate Album Mp3 Zip
    Download FACE – Искренний Album Mp3 Zip
    Download Sea Of Snakes – World on Fire – EP Album Mp3 Zip
    Download Lemmiwinks – World Domination – EP Album Mp3 Zip
    Download Till – Oyer and Terminer Album Mp3 Zip
    Download Penadas por la Ley – Iraultza Gara – EP Album Mp3 Zip
    Download Nerio José – Regalo de Dios Album Mp3 Zip
    Download Morten Christensen – Hvor Alting Begynder Album Mp3 Zip
    Download Verschillende artiesten – Up And Coming Singer Songwriters Album Mp3 Zip
    Download D-Nox & Beckers – Reception (Remixes) Album Mp3 Zip
    Download Eamon O’Leary – The Silver Sun Album Mp3 Zip
    Download Tommy Warzecha – Introversvm Album Mp3 Zip
    Download Holy Moly Jazzband Deluxe – Back To Swing! Album Mp3 Zip
    Download One Down – A Lonely Joy Album Mp3 Zip
    Download Various Artists – 100 Techno Hits Album Mp3 Zip
    Download K-E – Street Album Mp3 Zip
    Download Gabriel Moreno – Whiskey With Angels Album Mp3 Zip
    Download Emmanuel Sabás – Christmas Memories Album Mp3 Zip
    Download Maxwell Avenue – Happily Never After – EP Album Mp3 Zip
    Download Samira Golbaz & Hamid Motebassem – Damsaz Duet Album Mp3 Zip
    Download Oasis de Détente et Relaxation, Relaxation Détente & Zen Ambiance D’eau Calme – Zen Ambiance Noël Album Mp3 Zip
    Download G.O.A.T – Alpha 0 Album Mp3 Zip
    Download pumapjl – Naturalidade – EP Album Mp3 Zip
    Download Claire-Lyse Von Dach – We Are One Album Mp3 Zip
    Download Doctor Dj – Bipolarism Album Mp3 Zip

Comments are closed.