Fitch Ratings affirmed Italy's “A-” credit rating on Friday, pointing to progress on cutting its public spending deficit, but kept the outlook negative citing the risk of possible political and policy instability following upcoming elections.

“The current rating is based on the assumption that a stable new government will be formed shortly after the forthcoming elections and the government's policies will be consistent with recent structural reforms, and further measures to enhance the economy's competitiveness and growth potential will be adopted,” said Fitch in a statement. - Sapa-AFP