Moody’s raises outlook on banks, Italy will return to growth – Ultima Ora

Moody’s raises outlook on banks, Italy will return to growth – Ultima Ora

(ANSA) – MILAN, MARCH 25 – Moody’s revises the prospects for the Italian banking system upwards, improving the outlook from “negative” to “stable” on the “expectation that the Italian economy will return to growth this year after the strong contraction produced by the coronavirus in 2020 “. According to the rating agency “the sector will benefit from lower IFRS9 provisions on expected credit losses compared to last year, even if the adjustments will remain high”. For Moody’s “problem loans will increase, especially after the moratoriums linked to the coronavirus end” even if “continued government support in the form of secured loans, together with the continuation of NPL disposals, will partially offset the deterioration in asset quality. “. (HANDLE).

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