Italian rating hit by Moody’s downgrade

In a move that ratchets up the pressure on EU leaders to work faster to resolve the eurozone’s banking and sovereign debt crisis, Moody’s Investors Service on Tuesday (4 October) knocked down Italy’s credit rating by three notches.

While Prime Minister Silvio Berlusconi dismissed the downgrade as expected, the move was motivated by concerns that the country was burdened with “political and economic uncertainties”.

"The negative outlook reflects ongoing economic and financial risks...