October 23 (Reuters) – Fitch Ratings rating agency announced Friday it confirms ratings of Italy and Spain, both countries being rated BBB +, notes that are both equally matched d a stable outlook.
The quality of Italy’s signature is based on a large and diversified economy with high added value, with a reasonable private sector debt and a manageable system of pensions, Fitch says.
Note however, puts these structural forces facing less favorable factors, such as high public debt and a performance and limited growth prospects.
The agency notes that the debt of Italy will probably remain above 120% of GDP until the end of the decade (it was 132% of GDP at end 2014), which makes it vulnerable to external shocks .
She added that the program of quantitative easing from the European Central Bank (ECB) should, however, help strengthen inflation expectations.
As for Spain, Fitch notes that the country emerged from recession through a strong economic recovery – it makes finding an equivalent for Italy – driven by domestic demand and takes note of her surplus of current accounts and vigor institutional.
In view of these good points, it puts high debt ratios for both the private and public sectors and also the external point of view, and a high unemployment rate. (Wilfrid Exbrayat for the French service)
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