Silvio Berlusconi (far right)
Media playback is unsupported on your device

Italy's debt rating 'a serious wake-up call'

Italy has had its sovereign debt rating cut by Standard & Poor's, the latest move in a deepening European debt crisis.

S&P cut its rating one level to A/A-1 from A+/A-1+, adding that the outlook for the country was negative.

It cited fears over Italy's ability to cut state spending and bring its finances in order.

Howard Wheeldon, senior strategist at the brokers, BGC Partners, described it as a ''serious wake-up call for the Berlusconi government''.

Go to next video: Austerity bill sparks clashes in Rome