Italy has become the latest major economy to have a credit worthiness downgrade. Standard and Poor’s Rating services cut the country’s sovereign-debt down a notch to A. The level is five steps above junk territory and is still considered an investment grade.
The surprise move by the agency said Italy’s weak economic growth and fragile government coalition will make it harder to head off the growing crisis sweeping the euro zone.
Italy is the biggest country in the single currency region so far to be hit by a downgrade. Its 1.9 trillion euro public debt is bigger than the combined debts of Greece, Spain, Portugal and Ireland, making it too big to bail out.