Moody’s Decision on Junk Rating This Week Has Italy on Edge
- Country is rated one step above junk, with negative outlook
- Assessment by Moody’s would be first since Meloni’s budget
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A possible downgrade of Italy to junk this week would be hugely symbolic, potentially consequential — and very controversial.
The unprecedented branding of a Group of Seven economy as a “substantial credit risk” could be delivered by Moody’s Investors Service, whose Baa3 rating for the country is at the lowest rung of investment grade, with a negative outlook.