Moody´s cuts outlook on Italian debt, cites slow and halting progress
Analysts at Moody´s downgraded the outlook on Italy´s long-term debt rating in the wake of the results of the country´s constitional referendum and what they might signal for the cost and sustainability of its debt burden.
The ratings agency cut the outlook from 'stable' to 'negative' citing the Mediterranean country´s "slow and halting" progress on economic and fiscal reform.
Prospects for both had diminished further following the 'no' vote in the 4 December plebiscite, Moody´s said in a statement issued late on Wednesday evening.
In its opinion, that meant a decrease in Italy´s "large" debt burden would be further postponed as a result of subdued medium-term growth prospects and recent fiscal slippage, "thereby prolonging the sovereign's exposure to unforeseen shocks".
As of 0955 GMT the yield on the benchmark Italian 10 year bond yield was higher by seven basis points to 1.95%.