Moody's downgraded Italy's rating

[anne.pogachar]

Moody's Investors Service has today downgraded Italy's government bond rating to Baa2 from A3. How much do you think this will influence on EUR or Europian stocks on short or long term?

 

[Pharaoh]

I have the feeling that these downgrades are no longer all that surprising, so I don't expect the Euro to nosedive over any one downgrade. The real damage will come over time, since the downgrade will make it more expensive for Italy to borrow money.

 

[Sub-zero]

All of that peripheral downgrades are already priced in, so there won't be much reaction to it.
BTW it's worth noting that there's a new Rating Star emerging - Egan Jones! It seems like they've been waiting for too long to began acting and now they desperately trying to come up with Moody's, S&P and Fitch