S & P downgrades credit rating lowered Italy

Low blow for Italy in the middle of the debt crisis: The credit rating agency Standard & Poor's has downgraded the creditworthiness of the country continues. Italy will in the long-term credit rating from then evaluated with a grade of "A" instead of "A +", said Standard & Poor's. In the short-term credit rating agency placed the rating of "A-1 +" to "A-1" down. In addition, it could go downhill: The outlook is "negative" reasons S & P.

"The downgrade reflects our opinion contrary to the deteriorating growth outlook for Italy's economy," the agency explained its step. The recently adopted reforms were not sufficient to counteract. The government certified S & P is a lack of action. "We believe that the reduced pace of economic activity in Italy, the revised financial targets, the government makes it difficult to reach," the experts noted.

Italy threaten to higher costs for loans


Bad news for Italy: S & P rated the country down.
Because of the downgrading Italy now face higher interest rates in accepting new loans. Because the worse the credit, the greater seems the risk that the creditor does not recover his money. This risk can be the lenders pay higher interest rates.

On Friday, the rating agency Moody's has threatened to downgrade Italy despite the recent austerity adopted. Moody's rated Italy in its own rating system, "Aa2" - and noticeably better than S & P. This falls within the next month the decision.


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Billions in austerity adopted

Italy to Greece has the second highest debt in the euro zone. To counteract this, the country had recently adopted after much back and forth, a 54-billion-euro austerity package. The third-largest economy in the euro zone is groaning under a mountain of debt of 1.9 trillion euros. Italy leads with 120 percent of its economic performance during the Cretaceous.

Asian markets reacted to the scare investors. The euro fell by about half a U.S. cent to 1.36 dollars. The Tokyo stock market fell in early trading by 1.4 percent.