In less than a month Italy has been downgraded for the second time by rating agency Moody’s.
The agency reduced Italy from Aa2 to A2 and described the outlook at ‘negative’. The reason they gave for the downgrade was because there was a “sustained and non-cyclical erosion of confidence”.
Prime Minister Silvio Berlusconi downplayed the announcement saying that it had been expected.
The downgrade will add further pressure to the Eurozone and the possibility of more failures, especially after the Belgian/French bank Dexia sought a bailout from the EU after it became the latest bank to find itself in trouble.