Moody’s slashes Italy’s credit rating

Silvio Berlusconi
Silvio Berlusconi

The ratings agency blamed a “material increase in long-term funding risks for the euro area”, due to lost confidence in eurozone government debts.

Fellow ratings agency Standard & Poor’s has already cut its rating on Italy to a single A.

According to the BBC
, Italian prime minister Silvio Berlusconi says the decision was expected.

Berlusconi says: “The Italian government is working with the maximum commitment to achieve its budget objectives.”

He says that a plan to balance the government’s budget by 2013 has been approved by the European Commission.