Italy debt rating downgraded

US ratings agency Moody's has cut Italy's debt rating by two notches citing a contagion risk from Spain and Greece as the eurozone crisis continues to rage.

"The risk of a Greek exit from the euro has risen, the Spanish banking system will experience greater credit losses than anticipated, and Spain's own funding challenges are greater than previously recognized," the agency said in an accompanying explanatory note.

"Italy's near-term economic outlook has deteriorated, as manifest...