Italy will not lose access to capital markets or see its sovereign debt downgraded below investment grade, said the head of the European Stability Mechanism Klaus Regling said on Thursday.
“There is no immediate danger for Italy to lose access to the markets, there is no immediate danger of it being downgraded below investment grade, they are still two notches above,” Reuters reports Regling saying.
Speaking at an International Monetary Fund meeting in Bali, Indonesia, Regling was invited to compare Italy to the Greek experience in 2010.
Regling also noted other differences between Greece and Italy, namely a current account surplus, high private domestic saving, and the structure of the public debt, which is mostly domestically owned.
In the meantime, sources at the European Central Bank told Reuters that Italy cannot count on bond-buying assistance unless there are fiscal consolidation measures.