Italy’s credit rating was cut by Moody’s Investors Service for the first time in almost two decades on concern that Prime Minister Silvio Berlusconi’s government will struggle to reduce the region’s second-largest debt amid chronically weak growth.
Moody’s lowered Italy’s rating three levels to A2 from Aa2, with a negative outlook, the New York-based company said in a statement yesterday. The action comes after Standard & Poor’s downgraded Italy on Sept. 20 for the first time in five years. Italy was last cut by Moody’s in May 1993.
EQUITIES: *Astaldi SpA (AST IM), Banca Ifis SpA (IF IM), Bolzoni SpA (BLZ IM), Dea Capital (DEA IM), Fidia SpA (FDA IM), Interpump Group (IP IM), Vittoria Assicurazioni (VAS IM), are among companies attending the STAR conference in London. *Fininvest SpA, the investment company owned by Prime Minister Silvio Berlusconi , submitted a filing contesting an Italian appeals court ruling requiring the company to pay Compagnie Industriali Riunite SpA 564 million euros. *Mediaset SpA (MS IM) Chairman Fedele Confalonieri, Communications Authority Head Corrado Calabro at a Rome conference. *UniCredit SpA’s (UCG IM) Bank Pekao SA, Banca Monte dei Paschi di Siena SpA (BMPS IM) at the Bank of America Merrill Lynch Banking & Insurance CEO Conference in London. *Telecom Italia SpA (TIT IM) had its debt outlook revised to “negative” from “stable” by Standard & Poor’s.
WHAT TO WATCH: *Italian ship owners’ association Confitarma holds annual meeting at 11:00 a.m. in Rome
SHAREHOLDER MEETINGS: *DiaSorin SpA (DIA IM), Safilo Group SpA (SFL IM)
GOVERNMENT: *Italy’s Banking association ABI holds conference on communication, President Giuseppe Mussari opens at 09:30 a.m. * Employers’ association Head Emma Marcegaglia speaks at Luiss University in Rome, 12:40 p.m. *German Chancellor Angela Merkel visits European Commission. 1:30 p.m. Press conference with European Commission President Jose Barroso is scheduled for 3:20 p.m.
ECONOMY: *Italy Services PMI Markit Survey, 09:45 a.m.
MARKETS: *The benchmark FTSE MIB Index fell for a third day, dropping 2.7 percent to 14,243.97. *The yield spread on 10-year Italian bonds and similar German securities widened 5 basis points to 377 basis points.