Moody's: Short-term credit implication of new Draghi-led government is positive

Moody’s Investors Service said on Monday that the short-term credit implication of the new Italian government led by Mario Draghi is positive for the country's credit rating, as reported by Reuters.

Additional takeaways

"The plan Italy will submit to Brussels on April 30 for the use of the EU funds will likely include high-quality infrastructure projects that potentially enhance the country's growth prospects."

"Draghi government's policy agenda is likely to seek structural economic reforms to improve growth potential."

"Once the urgency of the pandemic has subsided, the key challenge for Draghi govt will be to maintain the momentum behind reform and the political support for changes."

Market reaction

This report had little to no impact on the shared currency's performance against its rivals. As of writing, the EUR/USD pair was up 0.05% on a daily basis at 1.2125.