S&P retains Italy's sovereign ratings
2013-12-13 11:29:37
Standard & Poor's on Friday affirmed Italy's sovereign ratings citing its wealthy and diversified economy and robust external balance sheet.
However, the rating outlook remains negative suggesting at least a one-in-three chance of a downward in the next 12 months.
S&P said the ratings remained constrained by weak growth prospects and the net general government debt burden continues to be among the highest of all the rated sovereigns.
The volume of economic activity continues to be about 8 percent below its pre-crisis level and unemployment doubled to more than 12 percent of the labor force.
For 2014 and 2015, S&P projects only a slow recovery in Italian real GDP output of 0.4 percent and 0.9 percent, respectively.
Moreover, the agency warned that the rating could be lowered if the government fails to implement polices that would help to restore growth and keep debt indicators from deteriorating beyond current expectations.