Standard & Poor downgraded Italy's debt rating to A/A-1 with a negative outlook, warning of the county's weakening economy and precarious debt situation, reports Business Insider.
"In our opinion, the measures included in and the implementation timeline of Italy's National Reform Plan will likely do little to boost Italy's economic performance, particularly against the backdrop of tightening financial conditions and the government's fiscal austerity program," S&P said in a statement.
S&P said Monday that the main factors contributing to the downgrade are Italy’s political and debt issues.
S&P also says it anticipates that policy differences will likely limit Italy’s ability to respond effectively to its debt crisis.
Italy has been grappling with a threatening debt load and its government has been under pressure recently to enact austerity measures to rein in spending.
According to a recent Washington Post report, S&P says that weaker economic growth will likely limit the effectiveness of Italy’s fiscal consolidation program.
(The Associated Press contributed to this story.)