Ratings agency Moody's told CNBC Wednesday that it's waiting to see the full policies enacted by the anti-establishment government in Italy before updating its views on the country.

These agencies offer guidance to investors on how risky buying debt is from a particular government or company. The rating review from Moody's is seen as a critical market test for the Italian government, and it could potentially roil markets in Europe if a downgrade is announced.

This comes as the Italian government plans various changes to its economy, such as increasing public spending, changing previous reforms on the pension system and stopping a planned sales tax increase.

"Our ratings are not about whether the policies are right or wrong. Our ratings are merely rank orderings of credit risk, they are an assessment of 'will you get your money back in full and on time'," Colin Ellis, managing director for credit strategy at Moody's, told CNBC's "Squawk Box Europe."