Latest News
Broker-assisted orders are
an additional $6.00.
Standard and Poor's cuts Italy's credit rating
Tuesday, September 20, 2011
Ratings agency Standard and Poor's (S&P) cut Italy's credit rating, providing the country with its first credit downgrade in five years. This move triggered criticism from the country, which stated that the decision was out of touch with Italy's current efforts to pay off its debts and accelerate economic growth, USA Today reports.
S&P reduced the credit rating to A from A+ with a negative outlook, according to Bloomberg. The media outlet said that inflating borrowing costs, meager growth in the economy and an unstable government would make lowering Italy's debt a challenge.
Markets were not affected but the move is likely to intensify concerns that Italy's economy is getting drawn into Europe's debt crisis, USA Today reports. Italy's 10-year bond yields increased 9 basis points to reach 5.674 percent, which is 387 basis points higher than German debt, according to Bloomberg.
Italy's debt is 120 percent of its GDP, which is the second highest ratio in the eurozone. It has been able to maintain debts due to investors who wanted the country's bonds.
Investors who engage in low cost trades might benefit from monitoring credit ratings downgrades such as these.
Sign-up for the eOption Daily Market Report
eOption’s Daily Market Report is a timely and informative service detailing equities that have recently met classic chart pattern conditions for bullish and bearish equities. To receive the eOption Daily Market Report, you must be a current client and have a current email address on file. Please contact support@eoption.com or login to your account and enroll for electronic statements or confirms. More Information
