Moody’s Downgrades Italy By Three Notches

WSJ ^ | 10/04/11

[TigerLikesRooster]

Moody’s Downgrades Italy By Three Notches

/snip

Here’s the Moody’s report:

Moody’s Investors Service has today downgraded Italy’s government bond ratings to A2 with a negative outlook from Aa2, while affirming its short-term ratings at Prime-1. The rating action concludes the review for downgrade initiated by Moody’s on 17 June, 2011.

The main drivers that prompted the rating downgrade are:

(1) The material increase in long-term funding risks for euro area sovereigns with high levels of public debt, such as Italy, as a result of the sustained and non-cyclical erosion of confidence in the wholesale finance environment for euro sovereigns, due to the current sovereign debt crisis.

(2) The increased downside risks to economic growth due to macroeconomic structural weaknesses and a weakening global outlook.

(3) The implementation risks and time needed to achieve the government’s fiscal consolidation targets to reverse the adverse trend observed in the public debt, due to economic and political uncertainties.

/snip

[Ken H]

Thatsa no good.

[HeartlandOfAmerica]

Wonder if she’ll be able to sue the italian govt for false arrest, false imprisonment, conspiracy, court costs and a slew of other stuff, not to mention emotional distress, pain and anguish and all that other touchy-feely stuff to the tune of about 3 billion dollars or about 800 billion lira.

[FormerACLUmember]

Oh (Expletive deleted), the stock market is going to LOVE this.

So much for my retirement.

[reg45]

I wonder what it would be like to own Italy!

[Lazamataz]

There will be a World War in less than 3 years.

Hopefully we can keep it from going nuclear.

[TigerLikesRooster]

Or stay far away from blast zones. Since I suspect nukes will go off in Mid-East or S. Asia, you may not have to worry too much, barring Al Qaeda set it off inside U.S.

[GOPJ]

It’s getting so bad that the Greeks are leaving Greece.

They better get out while the gettin's good...