Austerity package outlined by Italian Prime Minister Monti has eased near-term pressure on Italy's credit rating, says Fitch Ratings; outlook on nation's A+ rating remains negative, reflecting need for Italy to execute its reforms

Cindy Allen

LONDON , December 8, 2011 (Associated Press) – Fitch Ratings says the recent austerity package outlined by Italy's new Prime Minister Mario Monti has eased the near-term pressure on the country's credit rating.

Fitch says the austerity package strengthens the credibility of Italy's attempts to balance its budget by 2013.

However, Fitch also says Thursday that the outlook on the country's A+ rating remains negative, reflecting the need for Italy to deliver substantive structural reforms to boost growth. Italy also has to demonstrate that it can tap bond markets, given its need to rollover a large chunk of debts next year.

Italy is considered too big for Europe's current bailout facilities to bail out.

Monti replaced Silvio Berlusconi as Prime Minister last month.

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