Italy’s Aa2 Debt Credit Ratings May Be Reduced by Moody’s

Italy’s credit ratings may be reduced by Moody’s Investors Service because of economic growth challenges, risks associated with efforts to reduce debt and the potential for higher borrowing costs.

The nation’s third-ranked Aa2 local and foreign-currency government bond ratings were placed under review for a possible downgrade, Moody’s said in a statement yesterday. The country’s short-term Prime-1 ratings were affirmed.