06:20 20Sep11 RTRS-S&P LOWERS UNSOLICITED RTGS ON ITALY; OUTLOOK NEG
06:21 20Sep11 RTRS-RPT- S&P LOWERS UNSOLICITED RTGS ON ITALY; OUTLOOK NEG
06:22 20Sep11 RTRS-S&P LOWERED ITS UNSOLICITED LONG- AND SHORT-TERM SOVEREIGN CREDIT RATINGS ON THE REPUBLIC OF ITALY TO ‘A/A-1’ FROM ‘A+/A-1+’. THE OUTLOOK IS NEGATIVE
06:22 20Sep11 RTRS-S&P SAYS THE DOWNGRADE REFLECTS OUR VIEW OF ITALY’S WEAKENING ECONOMIC GROWTH PROSPECTS AND OUR VIEW THAT ITALY’S FRAGILE GOVERNING COALITION AND POLICY DIFFERENCES WITHIN PARLIAMENT WILL LIKELY CONTINUE TO LIMIT THE GOVT’S ABILITY TO RESPOND DECISIVELY
06:23 20Sep11 RTRS-S&P SAYS THE MEASURES INCLUDED IN AND THE IMPLEMENTATION TIMELINE OF ITALY’S NATIONAL REFORM PLAN WILL LIKELY DO LITTLE TO BOOST ITALY’S ECONOMIC PERFORMANCE
06:23 20Sep11 RTRS-S&P SAYS THINKS THAT THE GOVERNMENT’S PROJECTION OF A EUR60 BILLION SAVINGS MAY NOT COME TO FRUITION
06:24 20Sep11 RTRS-S&P SAYS REVISED BASE-CASE SCENARIO ASSUMES THAT ANNUAL REAL GDP GROWTH WILL BE 0.6 PERCENTAGE POINTS LOWER OVER THE 2011-2014 FORECAST HORIZON
06:24 20Sep11 RTRS-RPT-S&P SAYS REVISED BASE-CASE SCENARIO ASSUMES THAT ANNUAL REAL GDP GROWTH WILL BE 0.6 PERCENTAGE POINTS LOWER OVER THE 2011-2014 FORECAST HORIZON
06:28 20Sep11 RTRS-S&P SAYS COULD LOWER THE RATINGS IF, AGAINST ITS EXPECTATION, THE CURRENT ACCOUNT DEFICIT REMAINED HIGHER THAN 10% OF CURRENT ACCOUNT RECEIPTS BEYOND 2013
06:33 20Sep11 RTRS-S&P cuts Italy ratings one notch, outlook negative
Sept 20 (Reuters) – Standard and Poor’s downgraded its unsolicited ratings on Italy by one notch to A/A-1 and kept its outlook on negative, a major surprise that threatens to add to concerns of contagion in the debt-stressed euro zone.
S&P in a release dated Sept. 19 said the cut reflected its view of Italy’s weakening economic growth prospects.
Italy’s fragile governing coalition and policy differences within parliament will likely continue to limit the government’s ability to respond decisively to the challenging domestic and external macroeconomic environment, the agency said.
“In our opinion, the measures included in and the implementation timeline of Italy’s National Reform Plan will likely do little to boost Italy’s economic performance, particularly against the backdrop of tightening financial conditions and the government’s fiscal austerity program,” said S&P.
The move from S&P came as a surprise as the market had thought Moody’s was more likely to downgrade Italy first. Moody’s last week said it would take another month to decide on its action.
Credit Agricole Group