Moody's comments on the situation in Italy

Moody's comments on the current situation in Italy were as follows:

• The key driver for rating action is the risk of significant weakness in financial strength.
• The 5-star movement and the LEGA party were expected to form a government this week.
• The new elections are likely to produce similar results to the March elections.
• The sovereign rating is likely to be reduced if the next government adopts fiscal policies that are not sufficient to put the public debt ratio on a sustainable and downward path over the coming years.