Fitch cuts Italy’s rating outlook on possible fiscal loosening

Fully justified: Tourists walk past a souvenir stand in Piazza del Duomo in Milan. Italy says Fitch’s decision to maintain the country’s long-term rating is fully justified. — Bloomberg

SAN FRANCISCO: Italy’s rating outlook was lowered by Fitch Ratings, which said the fiscal plans of the new government risk a degree of fiscal loosening.

Fitch changed the nation’s credit outlook to negative from stable. The rating company maintained its foreign long-term credit rating at BBB, a decision applauded by the Italian government and cited as proof of the credibility of its economic programme.