Berlusconi: Moody's downgrade 'was expected'

Italy's credit rating has been cut for the second time in as many weeks.

Ratings agency Moody's cut the country's rating by three notches, citing an increase in long-term funding risks for the euro area.

Prime Minister Silvio Berlusconi said the decision was expected.

It follows the downgrade of the country's creditworthiness by another ratings agency, Standard and Poor's, a fortnight ago.