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Moody's Downgrades Italy Bond Rating

Wall Street Journal Original article ›

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Moody's lowered Italy's credit ratings by two notches from A3 to Baa2, putting it two levels from junk territory. Moody's views are that Italy was subject to increasing deterioration in market confidence with contagion from Spain, as Spain may need more support and its banking system is likely to have more losses than expected. Moody's also sees diminished overseas investments in Italy. Its assessment is for a 2% decline in GDP in 2012. High debt levels and significant funding needs in 2012-2013 are also taken into account in this rating.

Italy- government debt, credit ratings, and borrowing costs 2010-2013

05/14/2010

Italy's borrowing costs went up to 5.7% a week after the July 22, 2011 eurozone debt deal for Greece.

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