Election costs Italy another downgrade

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Election costs Italy another downgrade

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Fitch cut Italy’s sovereign credit rating on Friday.

It was reduced from A-minus to BBB-plus with a negative outlook.

The rating agency said that was, in part, because of the political uncertainty following the country’s recent inconclusive elections.

Fitch does not believe a stable new government can be formed in the next few weeks and the economy already in deep recession is unlikely to get necessary structural reforms.