Italian credit rating may be cut amid public debt fears

MOODY'S is warning that it may cut Italy's credit rating over concerns about the country's ability to raise growth and reduce public debt, among the highest in Europe.

It also cited fragile market sentiment for European countries with high levels of public debt, which pushes up borrowing costs.

The warning follows a similar move by Standard and Poor's, which also cut its rating outlook for Italy's debt from stable to negative.