The legacy of the non-performing loans that have piled on the balance sheets of Italian lenders during the economic crisis "will limit the credit-issuing policies of the banks" and will "weigh on recovery prospects," Standard and Poor's said Tuesday in its annual report on Italian companies. The ratings agency described Italy's recovery after years of recession as "superficial" and forecast GDP growth of 0.7% in 2015 and 1.2% in the following two-year period.
The government of Premier Matteo Renzi has helped fuel a surge in acquisitions by foreign buyers by introducing more pro-business conditions in Italy, Standard & Poor's said.
Greater economic stability and a slight recovery in gross domestic product (GDP) is also encouraging acquisitions, the ratings agency said in its annual report on Italian companies.
Since coming to power in February 2014, Renzi has overhauled the jobs market and introduced reforms to public administration, aiming to make the country more attractive to foreign investors.
Company investments should pick up between 2015 and 2016 after several years of declines, S&P said. It added that this would be helped by easier access to credit.
S&P warned however that the legacy of the non-performing loans that have piled on the balance sheets of Italian lenders during the economic crisis "will "weigh on recovery prospects".
The ratings agency described Italy's recovery after years of recession as "superficial" and forecast GDP growth of 0.7% in 2015 and 1.2% in the following two-year period.
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