S&P downgrades Italy

S&P cut its rating by one level to A from A+, adding the outlook for the country was "negative". It cited fears over Italy's ability to cut state spending and bring its finances in order, particularly given the country's growth prospects. The move comes just days after Moody's suspended any action on Italy for a month, having been widely expected to cut its own credit rating for the region last Friday. Italy recently passed an unpopular austerity budget to try to head off a crisis of confidence, but yields on Italian debt have risen sharply regardless. "We believe the reduced pa...