Italy rating cut close to junk

Tim Wallace
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ITALY’S government debt was downgraded yesterday by agency Standard and Poor’s, which warned the state faces a gloomy future of low growth and high debt.

It cut the government’s rating by one notch to triple-B, meaning it just holds on to its investment grade rating.

However, the agency left the country on negative ratings watch, meaning there is at least a one in three chance of a downgrade to junk status in the next year.