Italy's bond rating downgraded

Credit ratings agency Moody's has downgraded Italian government bonds from "Aa2" to "A2" with a negative outlook, citing risks for the financing of long-term debt and slow economic growth.

"The negative outlook reflects ongoing economic and financial risks in Italy and in the euro area," the agency said in a statement on Tuesday.

It also warned that an uncertain market environment and a risk of further deterioration in investor sentiment could constrain the country's access to public debt markets.

"If such risks were to materialise and the long-term availability of external sources of liquidity support were to remain uncertain, the country's rating could transition to substantially lower rating levels."

See AlJazeera News: http://english.aljazeera.net/news/europe/2011/10/201110422323775630.html