Fri Mar 8, 2013 7:7PM

credit ratingFitch credit rating agency has downgraded Italy’s credit rating to BBB+ citing mushrooming debt and recession as the main reasons for the downgrade.

The international agency announced on Friday that it has cut Italy’s credit rating to BBB+ from A-, adding that “The increased political uncertainty and non-conducive backdrop for further structural reform measures constitute a further adverse shock to the real economy.”

“The inconclusive results of the Italian parliamentary elections on February 24-25 make it unlikely that a stable new government can be formed in the next few weeks,” Fitch said.

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