It said recent austerity measures in the country had boosted fiscal consolidation but criticised "the initially hesitant response by the Italian government to the spread of contagion" from Europe's debt crisis. Spain also gets downgraded, but because of risks of slow growth and high regional debt. The country drops two notches to AA-. 17.18 And Fitch has just presented Europe with a double-whammy of downgrades, knocking Spain down due to its slow growth and high regional debt. 17.13 Fitch has cut Italy's rating one notch, to A+, following Moody's, which cut its Italian rating three notches earlier this week. http://euobserver.com/1016/113860
Netherlands: Indebted states must be made ‘wards’ of the commission or leave euro
http://euobserver.com/19/113552
Friday, 7 October 2011
Spreads in both countries were perilously close to the 6% - 7% band.
17.26 Fitch's cut to Italy's credit rating follows downgrades by Moody's and Standard & Poor's, and is down to "intensification of the euro zone crisis that constitutes a significant financial and economic shock which has weakened Italy's sovereign risk profile".
http://www.telegraph.co.uk/finance/financialcrisis/8782663/Debt-crisis-live.html
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