Italy’s Economy Minister Roberto Gualtieri said on Wednesday, the economic fundamentals are solid.
This comes after Fitch Ratings downgraded Italy’s long-term foreign-currency issuer default rating (IDR) to ‘BBB-‘ from ‘BBB’ while maintaining the Outlook – Stable.
The rating agency said that “the downgrade reflects the significant impact of the global COVID-19 pandemic on Italy’s economy and the sovereign’s fiscal position. “
Last week, Gualtieri said he expects a strong rebound in Q3 GDP and significant growth next year.
EUR/USD unperturbed by the rating downgrade
The shared currency seems to have ignored the Italian rating downgrade, as EUR/USD challenges highs above 1.0850 amid a broadly weaker US dollar.