Credit rating agency Fitch has opted to hold recession-hit Italy’s credit rating at BBB, a move that provided a major boost for Italian banks' stock value, all of whom are major holders of the country’s public debt.
Fitch’s decision means Italy retains its investment-grade status. A downgrade would bring Italy’s sovereign bonds to the brink of so-called “junk status,” which greatly diminishes their value.
The rally for the country’s bonds pushed down their yields and lowered the cost of servic...
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