(ANSA) - Rome, May 21 - The government contract between the anti-migrant Euroskeptic League and the anti-establishment 5-Star Movement (M5S) "increases the risks for the sovereign-debt profile, in particular through a budget easing and a potential damage to confidence", Fitch said Monday. The ratings agency said "it is uncertain to what extent these risks will translate into a weaker credit rating, it will depend on the government's capacity to implement its programme". The two parties have unveiled a populist programme that will aim to breach EU spending limits.
Country risk up with League-M5S govt - Fitch
Still early to quantify possible impact on rating