WorldWideMarkets Community

Forex Trading, Market News & Technical Analysis

S&P Cuts Italy Debt Rating

Posted by Joseph Trevisani on Jul 9, 2013 1:51:00 PM

ScreenHunter 1403 Jul. 09 14.07Bloomberg

Standard & Poor's, the credit rating agency, downgraded Italy's sovereign debt rating one level to BBB from BBB+ with a  negative outlook. "The rating action reflects our view of the effects of further weakening growth on Italy's economic structure and resilience, and its impaired monetary transmission mechanism", said S&P.

The new rating remains 'investment grade, two levels above 'non-investment' or 'junk' status.

The last reduction came in January 2012 when the agency lowered the Italian rating  two levels to BBB+ from A also with a negative outlook.

The Italian economy contracted 0.6% in the first quarter and 2.4% on the year. Second quarter figures will be released on August 6th.

The euro fell as low as 1.2754 after the announcement.




Tools & Educational Resources

Forex 101LEARN MORE >>
Learn the basics of Forex and how to practice trading the markets.

GlossaryLEARN MORE >>
Confused by the language? Click here and search for key trading terms.

Browse our frequently asked questions and find your answers right away.

Access to the educational lessons, webinars and platform walkthroughs.


Get started with a FREE $10,000 Demo Account and experience the Forex Market RISK FREE!