S&P Affirms Italy Credit Rating, Cuts Outlook To Negative

(RTTNews) - Rating agency Standard & Poor's on Friday maintained credit ratings for Italy but downgraded its outlook to negative from stable.

The agency left the debt rating at BBB, two notches above "junk" status.

"The Italian government's economic and fiscal policy settings are weighing on the country's economic growth prospects, a critical driver of government debt-to-GDP trajectory," it said.

The negative outlook reflected the risk stemming from the government's decision to further increase public borrowing, which would weigh on the country's growth prospects.

"In our view, the government's planned economic and fiscal policy settings have eroded investor confidence, as reflected by a rising yield on government debt," it warned.