Italy = Borat…Thank you ZeroHedge for the Tweet of the Day

by John Galt
January 13, 2012 18:00 ET
And now, presenting the Tweet of the day courtesy of ZeroHedge:

I think old “Tyler Durden” said it without thinking of us minions and our twisted sense of humor. However, here is S&P's downgrade in full from their website (Click on this link to read the full damage):

S&P downgrades Italy rating

via Channel News Asia
Posted: 14 January 2012 0508 hrs

ROME: Standard and Poor's has decided to downgrade Italy's credit rating by two notches to BBB+ from A, Italian news agency ANSA reported on Friday citing government sources.

The ratings agency downgraded Italy to A from A+ in September last year under then-prime minister Silvio Berlusconi, who has since been replaced by former EU commissioner Mario Monti at the head of an austerity government.

The move puts Italy on the same Standard & Poor's grading for long-term debt as Kazakhstan, South Africa and Thailand in a major setback for the eurozone's third largest economy after France and Germany.

S&P is expected shortly to announce a one-notch downgrade for France to AA+ while Germany will retain its top rating in a review covering 15 of the 17 eurozone nations.

Since coming to power in November, Monti has pushed through a harsh austerity plan and has asked for European assistance in helping to drive down borrowing costs for Italy on the debt markets.

With sky-high public debt and an economy headed into a recession, Italy faces a daunting challenge this year as it needs to raise around 450 billion euros ($571 billion) on the markets at higher than usual rates.

In a bond sale earlier Friday, Italy raised 4.75 billion euros with the rate on three-year bonds easing to 4.83 percent from 5.62 percent in a similar sale last month.

- AFP/wk

BOOM.