Stoxx Europe 600 opens 0.1% lower at 372.42

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Italian election results have ‘no immediate effect’ on credit rating: S&P

Italy’s general election results, which saw a strong showing by populist parties but no clear winner, “should have no immediate effect” on the country’s BBB sovereign credit rating, S&P Global Ratings said Monday, in a news release. “In our view, there is currently a lack of visibility on the composition of the new government and, as a result, on its policy direction, which will continue to be a key driver of Italy’s creditworthiness,” the ratings firm said. S&P is maintaining a “stable” outlook on the rating, but warned that “downward rating pressure could build, besides due to other reasons, if budgetary consolidation faltered, especially if the incoming government abandoned the previous government’s commitment to sustained fiscal consolidation.” The euro dipped versus the U.S. dollar in early activity but regained its footing to trade at $1.2329 in recent action versus $1.2321 late Friday in New York. The yield on Italy’s 10-year bond, known as the BTP rose 3.5 basis points to 1.992%.

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