Standard & Poor's cuts Italian credit 'rating'

The rating agency S & P downgraded one level the 'rating' of Italy and warned that if they remain negative outlook.

The Standard & Poor's cut the 'rating' of Italy's debt at a level of "BBB +" to "BBB" - two notches above junk - because the prospect of weak growth of the Italian economy and weak financial system of the country, according to Bloomberg. "low growth is in large part a consequence of the rigidity in labor markets and products," explains the rating agency said in a statement.

The forecasts for the S & P Italy are "darker", the agency now predicts that the Gross Domestic Product (GDP) has Italian recession of 1.9% in 2013. This figure has been revised downwards since March, the agency expected to contract by 1.4% this year - in December 2011, the expectation was increased by 0.5%.

The agency attributed "the weak economic growth to the rigidity of the labor market in Italy" and notes that "labor costs increased more [in Italy] than any other country in the euro zone," which undermines the economic recovery.

In this scenario the S & P threatens to make further cuts in the 'rating' of Italy: "if the government did not implement structural reforms in the labor market, products and services" and "implement policies that prevent fiscal indicators to deteriorate beyond current expectations" . S & P also requires measures to reduce the country's debt, as significant asset sales and privatizations.