DBRS Continues to Assess Italian Rating

On the 5th August, DBRS placed the Republic of Italy’s A (low) long-term foreign and local currency issuer rating Under Review with Negative Implications [URN].

DBRS continues to assess the outcome of the constitutional referendum in Italy, along with other rating factors. We outlined these factors in the Republic of Italy sovereign rating report http://www.dbrs.com/research/298430/italy-republic-of-rating-report.pdf. DBRS will assess the impact of the referendum result on the political situation in Italy; the prospects for an amendment of the electoral law and the continuation of structural and institutional reforms; progress in improving the strength of the Italian banking system; and developments in the real economy and their impact on the trajectory of government debt-to-GDP.

DBRS stated in the press release http://www.dbrs.com/research/301735/dbrs-extends-review-of-italy-s-ratings-until-after-december-referendum.html that we would conclude the ongoing review soon after the referendum, or at the latest by 3rd February 2017. In light of potential developments, we re-iterate that we will conclude the review within the above time frame.

Today we published a short commentary outlining DBRS’ initial views on the impact of the Italian referendum, “Italy Rejects Renzi’s Reform”, 5th December 2016: http://dbrs.com/research/303237/italy-rejects-renzi-s-reform.pdf

All DBRS ratings are subject to European Union regulations for credit rating agencies. In accordance with the regulation, these credit ratings must be reviewed at least every six months and publication must fall on a Friday after 6:00p.m., Greenwich Mean Time. Deviation from DBRS’ publication calendar for sovereign ratings or related rating reports will occur only when necessary.

This calendar is available on the DBRS website under Sovereigns: http://www.dbrs.com/research/302852/2016-updated-publication-calendar-for-eu-sovereign-rating-reports.pdf