MILAN Feb 17 Fitch kept Italy on Monday on a
'negative' credit rating outlook as it said a new government led
by centre-left leader Matteo Renzi was likely to face similar
challenges to ousted predecessor Enrico Letta in a volatile
Political uncertainty and a deepening of Italy's recession
had prompted Fitch to downgrade the country's sovereign rating
to its current BBB+ in March.
"Uncertainty about the durability of (Italian) governments
and their capacity for structural reform and fiscal
consolidation is one reason for the Negative Outlook on Italy's
BBB+ rating," Fitch said.
Fitch's cautious assessment comes days after rival agency
Moody's lifted Italy's outlook to 'stable' from 'negative' for
the first time since the start of the euro zone crisis,
mirroring an improvement of its outlook on Spain.