Wednesday 21 September 2011

European Crisis Eurozone debt fears intensify after Italy downgrade

Yesterday evening Standard and Poor's downgraded Italy's credit rating one notch to A/A-1, with a negative outlook. The agency explained it's decision with the fact that prospects of stimulating the country's economy in the nearest future are becoming less probable due to the Italian government's inability to handle the situation. Italy is the second most indebted country in the Eurozone after Greece.

According to the S&P official publication: “The negative outlook reflects our view of additional downside risks to public finances related to the trajectory of Italy's real and nominal GDP growth, and implementation risks of the government's fiscal consolidation program. We are lowering our long- and short-term unsolicited sovereign credit ratings on Italy to 'A/A-1' from 'A+/A-1+'.”

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