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ROME — The Fitch agency has downgraded Italy’s sovereign credit rating and says the outlook on its long-term ratings is negative.
Fitch also cut Spain’s sovereign credit rating, citing risks of slow growth and high regional debt.
In its Italy report, Fitch said it was downgrading the government debt from AA- to A+. It cited high public debt, low growth and the “politically technical and complex” solution necessary to fix Italy’s financial ills and earn back the trust of investors.
It said the government’s hesitant initial response to the crisis had eroded market confidence.
The move by Fitch came after Moody’s Investors Service on Tuesday downgraded Italy’s bond ratings to “A2” with a negative outlook from “Aa2.”
