Moody’s move on Italy just playing catch up

Moody’s is putting their Aa2 rating (2 notches above S&P, 1 notch above Fitch) on Italy on review for a possible downgrade. They cite the following, 1)”Economic growth challenges due to macroeconomic structural weaknesses and a likely rise in interest rates over time, 2)Implementation risks surrounding the fiscal consolidation plans that are required to reduce Italy’s stock of debt and keep it at affordable levels and 3)Risks posed by changing funding conditions for European sovereigns with high levels of debt.” Bottom line, Moody’s is just playing catch up to the other rating agencies.

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