The furious Italian Government of the rating downgrade – EurActiv France

The Italian Government has expressed irritation over the weekend after the announcement early Friday evening, a negative watch placement of its credit rating by DBRS, the fourth largest global rating agency.

DBRS is the last great agency to have maintained an a for Italy, in the middle of the category of investment, and a lowering of its rating would increase funding costs for Italian banks already in a difficult period.

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The European Central Bank does indeed require that at least one of four agencies – DBRS, Standard & amp; Poor’s, Moody’s and Fitch. – Place the debt of a country investment grade for its banks to avail loans at advantageous rates at its counters

The Italian Economy Minister Pier Carlo Padoan, yet has recently assured that the country’s banks were not in a systemic crisis and do not threaten other banking systems. “The Italian banking system is not systemic crisis and is not a source of vulnerability for other banking systems,” he told parliament. An argument which has clearly not convinced DBRS

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A spokesman for the Ministry of Economy said Saturday that Rome plans to challenge the decision by DBRS because it was communicated outside the timetable fixed in advance, the rating agencies are required to comply with the financial crisis.

“Our opinion is that there has been a violation of the rules and we are currently assessing the situation to see if there are conditions to challenge the decision,” he said.

DBRS said he decided to review the notes outside its normal schedule due to political uncertainties surrounding the upcoming referendum on the Constitution, currently suffered by banks pressures, the fragility of the economic recovery and an environment outside less stable.

arguments “weak and unjustified,” according to the spokesman of the ministry, which however did not specify the means by which the Department could challenge the decision.

the review process of the note should take about three months. DBRS said in its statement that a possible lowering of its rating A (A-) is only a notch or BBB (B +), but enough to deprive Italy of its last note A.

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