Italy bond rating cut – Moody’s warns of more
The agency also expects further deterioration in the economy, which it says is likely to contract by 2% this year.
Italy's government bond rating has been downgraded by two notches to Baa2 from A3 – and Moody's Investors Service says it may reduce it further.
The cut leaves Italy's rating just two notches above junk status and the threat that if the country loses access to debt markets the rating will be reviewed.
The agency also warned of a further deterioration in the economy, which it now expects to contract by 2% this year, putting pressure on Italy's ability to meet its fiscal targets.
The downgrade is below the latest ratings for Italy from Standard & Poor's and Fitch Ratings.
NBR Staff
Fri, 13 Jul 2012
Fri, 13 Jul 2012
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Italy bond rating cut – Moody’s warns of more
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