May 17, 2018 / 5:39 PM / a year ago

DBRS says 5-Star, League plans could threaten Italy's credit rating

(This version of the story corrects current rating to BBB High from BBB.)

ROME (Reuters) - Ratings agency DBRS warned on Thursday that economic proposals by the anti-establishment parties that are trying to form a coalition government could threaten Italy’s sovereign credit rating.

“Developments in recent days have been disappointing,” the co-head of DBRS’ sovereign ratings department, Nichola James, said in reference to leaked draft proposals in the joint programme of the 5-Star Movement and the far-right Northern League.

James told Reuters the parties’ plans for big tax cuts and higher spending were “unlikely to be self-financing and, therefore, may threaten the continued reduction in the debt ratio that supports the current rating.”

DBRS has Italy on a BBB High rating with a stable trend.

Reporting by Giulio Piovaccari, writing by Gavin Jones

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