Feb 27 Moody's Investors Service said Italy's
inconclusive election outcome is credit negative because it
raises the possibility of new elections, prolonging the
country's political uncertainty.
"We would consider downgrading Italy's government debt
rating in the event of additional material deterioration in the
country's economic prospects or difficulties in implementing
reform," Moody's said.
"A deterioration in funding conditions as a result of new,
substantial domestic economic and financial shocks from the euro
area debt crisis would also place downward pressure on Italy's
Earlier, Standard & Poor's said Italy's recent election
would not immediately affect the country's sovereign rating but
could in the future.
Italy's inconclusive election is threatening prolonged
instability and a renewal of the European financial crisis.
Moody's assigned Italy its current Baa2 rating and negative
outlook July 2012, which it said reflected its view that risks
to implementing structural and fiscal reforms are substantial.