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JANE BURGERMEISTER REPORT:’Debt crisis spreads to Italy: credit agency downgrades forecast’

Debt crisis spreads to Italy: credit agency downgrades forecast

Credit rating agency slaps Italy with negative forecast, Deutsche Welle

Standard & Poors has slapped Italy with a negative forecast, raising the prospect that the credit rating of the eurozone’s third-largest economy could be slashed.

The credit rating agency Standard & Poors has downgraded its forecast for Italy from “stable” to “negative,” citing a weak economy and poor prospects for reducing Rome’s massive debts.

The negative forecast implies that there is a one-and-three chance Italy’s credit rating could be downgraded within the next 24 months.

A downgrade of Rome’s credit rating may raise fear among investors that the debt crisis which has gripped Greece, Ireland and Portugal will spread to Italy, the eurozone’s third largest economy.

“In our view, Italy’s current growth prospects are weak and the political commitment for productivity-enhancing reforms appears to be faltering,” Standard & Poors said in a statement.

Read more at: http://www.dw-world.de/dw/article/0,,15095847,00.html

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May 24, 2011 - Posted by | Internationally significant information, Jane Burgermeister Report

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