6:45 PM S&P cuts Italy's long term rating to A from A+, citing the
fragile political situation.
Lowered To 'A/A-1' On Weaker Growth Prospects, Uncertain Policy
Environment; Outlook Negative
-The negative outlook reflects our view of additional downside risks to
public finances related to the trajectory of Italy's real and nominal
GDP growth, and implementation risks of the government's fiscal
consolidation program.
-We believe the reduced pace of Italy's economic activity to date will
make the government's revised fiscal targets difficult to achieve.
Furthermore, what we view as the Italian government's tentative policy
response to recent market pressures suggests continuing future political
uncertainty about the means of addressing Italy's economic challenges.
-We project that such net debt will be 117% of GDP at year-end 2011, up
from 100% of GDP in 2007
DO SOMETHING!
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