Italy’s sovereign rating outlook was lowered to negative by Moody’s Investors Service, which cited accumulated risks from Russia’s war in Ukraine to the departure of Prime Minister Mario Draghi. Italy’s finance ministry called the action “questionable.”
The credit quality of the European nation, which is rated Baa3 by Moody’s, is under pressure from heightened government risk that could impede structural reforms, including those in Italy’s National Recovery and Resilience Plan, Moody’s analysts Sarah Carlson and Alejandro Olivo wrote on Friday.
