MILAN (Reuters) - Italy's credit ratings would benefit if the new government of Prime Minister designated Matteo Renzi delivers planned reforms at the swift pace that has been outlined, a senior analyst at rating agency DBRS told Reuters on Friday.
Giacomo Barisone, senior vice president at the agency's sovereign ratings group, said the resignation of Prime Minister Enrico Letta and his replacement by Renzi "once again highlights the volatility of Italian politics after inconclusive elections in Februay 2013."
However, the acceleration in the reform process announced by Renzi "would be positive for Italy's ratings as long as the ambitious timetable for the reforms is effectively respected."
Conversely, the prospects for Italy's ratings would suffer if the process stalled.
DBRS has a negative outlook on its 'A(low)' long-term rating on Italy's debt.
Barisone said the outlook could be raised to 'stable' if successful reforms of Italy's economy, institutions, labour market and tax system boosted its growth prospects.
(Reporting by Giulio Piovaccari, writing by Valentina Za, editing by Silvia Aloisi)