Economics
Italy Credit Rating Called Into Question on Government Deficit
- Moody’s: will act in accordance with regulatory obligations
- Fitch already factored similar deficit into its estimates
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Italy’s budget plans that would see a 2.4 percent deficit have not only put the government on a potential collision course with the European Union -- they may also have imperiled the nation’s credit rating.
“Moody’s is as good as certain to downgrade,” Ciaran O’Hagan, head of European rates strategy at Societe Generale SA, wrote in an emailed note.