Downgrade for Italy

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The Independent Online

The ratings agency Moody's cut Italy's credit score by two notches yesterday as it faces a "sharp" rise in funding costs due to contagion risks from Greece and Spain.

Italy's 10-year borrowing costs hit 6 per cent at one point, but it still raised €3.5bn (£2.8bn) in three-year debt at 4.65 per cent.