Tuesday, October 4, 2011

Italy's credit rating cut by 3 notches

Source: NHK World
Date: Wednesday, October 05, 2011 10:05 +0900 (JST)
by: Ai Uchida

Major US credit rating agency Moody's downgraded Italy's sovereign debt on Tuesday as the debt crisis continues in the Eurozone.

Italy's credit rating was lowered to A2 , down 3 notches from Aa2 .

Moody's said the downgrade is due to a further worsening of the European debt crisis. It also cited concerns about whether Italy can achieve fiscal reconstruction, as proposed by the administration of Prime Minister Silvio Berlusconi.

It was only last month that another US credit rating agency, Standard and Poor's, cut Italy's sovereign debt rating. Both agencies now give the same credit rating for Italy, which is the 6th level from the top.

Moody's cutting the rating by 3 notches could cause repercussions in financial markets already battered by a postponed decision on bailout loans for Greece.