Italy dismisses Fitch's downgrade as 'pre-announced'

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Italy's government dismissed Fitch's cutting of the country's sovereign-debt rating as "pre-announced", but said the ratings agency recognized the efforts made to tackle the financial crisis, local media reported on Saturday.

Fitch's move was expected but it differs from the downgrade of other rating agencies," said a note issued by Prime Minister Silvio Berlusconi's office.

"The agency's judgment reflects the euro-zone general scenario of uncertainty, as Fitch declares, while on the other hand it praises Italy's efforts at securing public finances by defining as 'reachable' our set budget balance goals,"read the statement.

The government also stressed that Fitch had judged Italy's finances in a much better state than those of many other European countries or countries with high credit rates.

Fitch downgraded on Friday Italy's sovereign credit rate from AA- to A+ and kept its outlook on negative over concerns that the government appeared to lack the strength and capability to cut the country's high debt and boost economic growth, thus failing to send a message of credibility to world markets.

Meanwhile, Italy's Central Bank director-general Fabrizio Saccomani also downplayed Fitch's move by saying that it "added nothing new to the current situation".

"All rating agencies tend to move together at the same time and in the same direction, as in a flock," said Saccomani.

The move of Fitch's was the third downgrading for Italy in recent weeks. Moody's rating agency on Tuesday cut the country's long-term credit rating by three notches, while earlier Standard & Poor's had slashed Italy's sovereign-debt rating by one notch on concerns that the government seemed incapable of responding to the challenging domestic and external macroeconomic environment.