S&P downgrades Italy

S&P downgrades Italy

Standard & Poor's cut Italy's credit rating, citing the nation's weakening economic growth.

NEW YORK (CNNMoney) -- Standard & Poor's Ratings Services cut Italy's sovereign credit rating late Monday, saying the nation's weakening economic growth and political uncertainty have dented its financial stability.

S&P now rates Italy's credit at A, down from A+, and kept its outlook on the country as negative, the agency said in a report issued Monday.

"The downgrade reflects our view of Italy's weakening economic growth prospects," S&P said. "Italy's fragile governing coalition and policy differences within parliament will likely continue to limit the government's ability to respond decisively to the challenging domestic and external macroeconomic environment."

S&P downwardly revised its estimates for Italy's GDP growth to an annual average of 0.7% between 2011 and 2014 -- a far cry from its previous projection of 1.3%.

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