Moody's on Dec. 7 revised to negative from stable the outlook on Italy's Baa2 long-term issuer rating, saying the prospects for economic and fiscal reform have diminished following voters' rejection of proposed constitutional changes.

As a result of the hit to already "slow and halting progress" on reform efforts, Italy now faces a rising risk that the reduction of its debt burden will be further delayed, Moody's said. It added that factors that could prompt a downgrade include the need for a "significant" recapitalization of banks by the government.

The agency also maintained Italy's local- and foreign-currency bond ceilings at Aa2 and said the country's Aa2 local- and foreign-currency deposit ceilings and P-1 short-term foreign-currency bond and deposit ceilings remain unchanged.