/RATINGS: Moody's noted the following late....>

ITALY: /RATINGS: Moody's noted the following late Thursday: "Although COVID-19

is leading to a severe econ shock that will push Italy's public debt to record

levels this year, the country's creditworthiness should remain broadly

unaffected given the temporary nature of the downturn & continuing low funding

costs. This view is based on 3 key assumptions: firstly, that the econ will

start to recover from Q320 onwards. Secondly, that sustained low funding costs

will allow the government to manage its higher debt level; and lastly that the

Italian authorities will present a medium-term fiscal plan that will reduce debt

over the coming years. Italy entered the coronavirus crisis with weaker credit

fundamentals than most other euro area countries, having recorded weak growth

over the last decade and very high public debt levels. Credit pressures could

intensify if Italy's economic recovery were to be delayed until 2021 or if it is

much weaker than expected, despite government and central bank measures.

Pressures would also build if the government failed to present a credible fiscal

strategy to repair the public finances or if a lack of consensus at the EU level

were to weaken policymakers' credibility and lead to higher borrowing costs.