MOODY'S has surprised investors by cutting Italy's credit rating two notches, leaving it just above junk.
Italy's debt is now rated Baa2 by Moody's, and the ratings agency has warned the country it could be cut further.
The move could hardly come at a worse time for Italy, which is seeking to sell 5.25 billion euros worth of bonds at an auction later today.
The ratings cut leaves Moody's ratings for Italy below those of the two other major agencies, Standard & Poor's and Fitch.
Read more at ABC news online.