S&P Cuts Italian Debt to A/A-1, Outlook Delicious

So Standard & Poor’s came out with a “surprise” rate cut on Italian debt this evening, the details via Reuters:

Standard and Poor’s downgraded its unsolicited ratings on Italy by one notch to A/A-1 and kept its outlook on negative, a major surprise that threatens to add to concerns of contagion in the debt-stressed euro zone.  Italy’s fragile governing coalition and policy differences within parliament will likely limit the government’s ability to respond decisively to the challenging domestic and external macroeconomic environment, the agency said.

And my dudes, if you thought the US Congress was dysfunctional, wait til you get a load of Italian Parliament, it’s a total Spaghetti Western – sex scandals, car bombs, mob influence, midgets, extra anchovies – you people have no idea.

Anyway, the endgame nears…each night a bit closer (let’s hope for all our sakes).  Only after the haircuts and the admissions can we rebuild.