June 19, 2017 / 11:12 AM / a year ago

"Weak" coalition govt won't necessarily cut Italy's rating - S&P

LONDON, June 19 (Reuters) - The emergence of a “weak” coalition government in Italy would not necessarily lead S&P Global to downgrade the country’s sovereign credit rating, the credit ratings agency said on Monday.

S&P affirmed Italy’s rating at BBB- with a stable outlook on May 5.

S&P said it did not expect any party to win an outright majority in the next parliamentary elections, the timing of which is not yet certain as the main political parties struggle to reach a deal on electoral reform.

Gains by the anti-EU Five Star movement, which is performing strongly in the polls, which could “raise questions” about the Italy’s economic recovery, it added.

“Overall, we are of the view that Italy’s current economic position is such that if even a weak coalition government appeared over the next few months, this, in and of itself, would not necessarily move the rating,” S&P said in its report.

Reporting by Marc Jones; Editing by Raissa Kasolowsky

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