Reuters: Italian NPL framework to test rating agencies
Reuters examines how questions over Italy’s NPL framework will place rating agencies at the centre of the scheme. LCM Partners was asked to comment:
“The government has placed a lot of responsibility on the rating agencies. If the rating agencies get it wrong, they could potentially be subject to legal claims by the state.
My opinion is that the agencies will have a very conservative approach when rating these transactions, some agencies may prefer to stay away. Because there are a lot of risks involved. It’s high-risk rating.”