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Italy and Spain debt downgraded

Friday 07 October 2011 17:59 BST
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The Italian and Spanish governments debt rating has been cut by credit rating agency Fitch.

Fitch says the outlook on Italy's long-term ratings is negative.

For Spain, Fitch cited risks of slow growth and high regional debt.

In its Italy report, Fitch said it was downgrading the government debt from AA- to A+.

It cited high public debt, low growth and the "politically technical and complex" solution necessary to fix Italy's financial ills and earn back the trust of investors.

It said the government's hesitant initial response to the crisis had eroded market confidence.

The move by Fitch came after Moody's Investors Service on Tuesday downgraded Italy's bond ratings to A2 with a negative outlook from Aa2.

AP

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