THE Covid-19 crisis has been a burden on government debt in many countries and has resulted in debt as a percentage of GDP rising to new heights, though it seems that rating agencies have shown pressured governments some patience.

Italy is an example where patience has been shown, particularly due to large economic aid packages from the European Union, but now Moody's has announced that it is losing its patience. It's still just a change in the rating outlook but credit ratings usually go toward the indicated direction, which is also a sign of everyday life returning for bond investors. The current interest hikes may very well turn out to be nothing compared with the next danger waiting around the corner.

Premium + Digital Edition

Ad-free access


P 80 per month
(billed annually at P 960)
  • Unlimited ad-free access to website articles
  • Limited offer: Subscribe today and get digital edition access for free (accessible with up to 3 devices)

TRY FREE FOR 14 DAYS
See details
See details