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ITALY HAS SEEN its credit rating downgraded by Standard and Poor’s amid concerns over its economic future.
The agency yesterday dropped Italy’s rating by one notch, from A+ to A. It also said the outlook for the country is negative, meaning further downgrades may be coming down the line.
Standard and Poor’s cited “weakening economic growth prospects” as the reason for the downgrade, the Financial Times reports. Italy has seen its financial situation become increasingly parlous in recent weeks, with the ECB forced to step in and buy sovereign bonds in a bid to hold down spiralling interest rates as market confidence in the country dissipated.
A finger was also pointed at prime minister Silvio Berlusconi’s embattled administration, with Standard and Poor’s picking out the country’s “fragile governing coalition” as another reason for its fears. It’s thought Berlusconi’s political problems – he has faced repeated calls to resign amid a string of sex scandals that shows no sign of stopping – will limit the government’s ability to make swift decisions on the crisis.
According to Business Week, S&P said Italy has the highest government debt among countries currently rated A. The Wall Street Journal reports that the country’s current debt is greater than that of Ireland, Greece, Spain and Portugal combined.
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If Merkel & co thought they had problems with Greece they aint seen nothing yet !
So why do they get an A when we get screwed!
Berlusconi is saying now, the downgrade is due to media exposure of his country – so its not his own fault then for being too busy for allegedly having sex with paid teenagers at too many Bunga Bunga parties and I believe recently calling his own country crap?
Berlusconi should never have been elected never mind let rule over the state.
Slashed ?? That used to mean something dramatic. This is one notch in a credit rating. I suppose it’s more accurate than the petrol stations with their "prices slashed" signs when the prices are going up!!??
Slashed?? What’s wrong with downgraded?
Let’s panic the situation by sensationalizing it! Slashed? Please! But it’s good copy, I can hear them say..
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