S&P downgrades Italy to BBB-/A-3

Standard & Poor's said it lowered its unsolicited long- and short-term foreign and local currency sovereign credit ratings on the Republic of Italy to BBB-/A-3 from BBB/A-2.

The outlook on the long-term ratings is stable.

S&P said the downgrade reflects the recurrent weaknesses it sees in Italy's real and nominal GDP performance, including its eroded competitiveness, which are undermining the sustainability of its public debt. Since its last report, the agency revised its average real and nominal 2014-2017 GDP growth projections for Italy down to 0.5% and 1.2%, respectively, from 1% and 1.9%.

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