Dagong downgrades Italy's credit ratings

BEIJING - The Chinese rating agency Dagong Global Credit Rating Co Ltd put Italy on its "negative" watch list in a report released on Monday.

Dagong initially put Italy's sovereign credit ratings (SCR) for local and foreign currencies at A- with a negative outlook in June 2010.

This week's change was made because of Italy's increasing dependence on the European bond market, and the fact that the trend of financing costs will directly affect the country's solvency.