Moody's Downgrading of Italy's Credit Rating Receives Mixed Reactions

Italian Prime Minister Silvio Berlusconi said the downgrading of his countrys long-term credit rating by Moodys on Tuesday was expected, considering the general economic outlook.

Moody’s downgrading of Italy’s long-term credit rating was met with mixed reactions by the country's top officials on Wednesday.

Italian Prime Minister Silvio Berlusconi said it was "expected," considering the general economic outlook and the previous credit rate cut by Standard & Poor's, Xinhua reports.

"We will move on our way. The Italian government is working with extreme determination on introducing new measures aimed at boosting growth,” he said.

“Above all, we will fulfil our commitments in securing public finances," Berlusconi added in a written statement.

On Tuesday, Moody's downgraded Italy's credit rating by three notches to A2 from Aa2 with a negative outlook, while affirming its short-term ratings at Prime-1, reports Xinhua.

Italian President Giorgio Napolitano, on the other hand, expressed grave concerns over Moody's downgrading and called for concrete actions.

Speaking at the Italy-Latin American Conference in Rome, he said the crisis needed to be overcome with “solidarity, cohesion and a coordinated governance by the entire global community.”

Emma Marcegaglia, chief of the leading industrial association Confindustria, criticized the government's lack of action, Xinhua reports.

She said that the downgrading could impede Italian banks from accessing credit on global markets with negative repercussion on firms' investments.

Meanwhile, Italian banking lobby (ABI) president Giuseppe Mussari urged the rapid implementation of growth measures to stabilize the economy, Xinhua reports.

Regarding the impact of Moody's decision on Italian banks, Mussari said the strength of the country's financial institutes solely depended upon an economic overhaul.

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