Italy is rated at Aa2 at the moment.
- Italy has macroeconomic structural weaknesses; likely interest rates will rise over time
- Implementation risk surrounding fiscal consolidation plans needed to reduce debt
- Changing funding conditions for European sovereigns with high debt levels
- Rising rates, weak economy make it difficult to grow enough to shrink debt to GDP ratio
- Euro area debt crisis and its impact on funding costs could help determine outcome of ratings review
EUR/USD dived to 1.4280 from 1.4315 1.4315…Looks like there is a bid around that level as we bounced pretty hard from there as oil made its lows earlier this afternoon.
