Moody's Investors Service on Wednesday affirmed Italy at Baa2 but revised down the outlook on the country's rating to negative from stable after Italian voters rejected a referendum on constitutional changes over the weekend. Moody's cited "the slow and halting progress on economic and fiscal reform in Italy, the prospects for which have diminished further following the 'no' vote in Sunday's constitutional referendum" as the main driver behind its decision. The ratings agency also expressed concerns that Italy may be exposed to "unforeseen shocks" for an extended period due to its tepid growth outlook and the recent deterioration in its fiscal position.
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