Pressure mounts on Italy as S&P cuts credit rating

STANDARD and Poor’s added to mounting pressure on Italy yesterday with a one-notch cut to its credit rating that hit eurozone markets and prompted calls for Silvio Berlusconi’s government to resign.

S&P cut its ratings on the eurozone’s third largest economy to A/A-1 from A+/A-1+, judging it less credit-worthy than Slovakia, and kept its outlook on negative, warning of a deteriorating growth outlook and damaging political uncertainty.

Berlusconi’s coalition has been plagued by infighting and policy disagreements as well as the prime minister himself battling a widening prostitution scandal.