April 28, 2020 / 8:24 PM / 2 months ago

BRIEF-Fitch Downgrades Italy To 'BBB-'

April 28 (Reuters) - Fitch

* FITCH DOWNGRADES ITALY TO ‘BBB-‘; OUTLOOK STABLE

* FITCH SAYS DOWNGRADED ITALY’S LONG-TERM FOREIGN-CURRENCY ISSUER DEFAULT RATING TO ‘BBB-‘ FROM ‘BBB’

* FITCH SAYS DOWNGRADE REFLECTS SIGNIFICANT IMPACT OF GLOBAL COVID-19 PANDEMIC ON ITALY’S ECONOMY & SOVEREIGN’S FISCAL POSITION

* FITCH SAYS FORECASTS AN 8% GDP CONTRACTION IN 2020 FOR ITALY

* FITCH SAYS ITALY’S GROSS GENERAL GOVERNMENT DEBT TO GDP RATIO WILL INCREASE BY AROUND 20PP THIS YEAR

* FITCH SAYS STABLE OUTLOOK PARTLY REFLECTS VIEW THAT ECB’S NET ASSET PURCHASES WILL FACILITATE ITALY’S SUBSTANTIAL FISCAL RESPONSE TO COVID-19 PANDEMIC

* FITCH SAYS DOWNWARD PRESSURE ON ITALY’S RATING COULD RESUME IF GOVERNMENT DOES NOT IMPLEMENT CREDIBLE ECONOMIC GROWTH & FISCAL STRATEGY

* FITCH SAYS RECESSION & ECONOMIC POLICY RESPONSE TO COVID-19 PANDEMIC WILL RESULT IN SIZEABLE DETERIORATION OF ITALY’S BUDGET BALANCE THIS YEAR

* FITCH SAYS ITALIAN PRIVATE SECTOR HAS SOME BUFFERS TO WITHSTAND SHARP SHORT-TERM DETERIORATION IN ECONOMIC OUTLOOK Source text for Eikon:

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