Italy Readies $6.1 Billion Bond Sale After Rating Cut
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Italy’s bond rating was cut two levels by Moody’s Investors Service hours before a sale of more than 5 billion euros ($6.1 billion) of debt as the financial crisis threatens to cut off market funding to the euro area’s third-biggest economy.
The ratings company lowered Italy’s government bond rating to Baa2 from A3 and said further downgrading is possible, according to a statement released in Frankfurt today. That’s two levels above junk and one above Spain, according to data compiled by Bloomberg.