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Egan-Jones cuts Italy on heels of Spain downgrade

( The woe spreads to Italy. CW )

By Sue Chang SAN FRANCISCO (MarketWatch) -- Egan-Jones Ratings Co. on Friday lowered Italy's sovereign rating to B+ from BB, noting that the country is in "miserable shape." "Italy's independent ability to support its banks is questionable given the country's weak condition," said the ratings agency in a statement. It also warned that Italy cannot support its debt if the European economy falters. Egan-Jones put the possbility of a default by Italy in the next year at 6%. It had cut Spain's rating to B from BB- earlier this week, citing the possibility that the government will likely have to extend more support to its banking sector.

http://www.marketwatch.com/story/egan-jones-cuts-italy-on-heels-of-spain-downgrade-2012-06-01?link=MW_latest_news