For the second time in less than a month Italians woke up to the news that their country's credit rating had been cut.<br/> This time Moody's downgraded Italy's government bond rating by three notches to A2 - lower than Estonia.<br/> Last month Standard and Poor's cut its rating for Italy.<br/> The latest move displays investors' concerns about the euro zone's third largest economy being dragged into the debt crisis, says Reuters Chief Economics Correspondent Gavin Jones.<br/> SOUNDBITE: Gavin Jones, Reuters Chief Economics Correspondent, saying (English):<br/> "It means markets are focusing very much on Italy's weaknesses now having for a long time being reassured by its relative strength of its financial system now they are looking at its political weakness and its inability to grow economically. It's a bad sign, its a sign of a lack of confidence in Italy to solve its problems."<br/> Prime Minister Silvio Berlusconi's government has come under pressure recently over it's handled of the escalating crisis.<br/> With low growth and huge public debt, the markets seem to have largely lost confidence in Berlusconi's ability to lead Italy to recovery.<br/> And some Rome residents agree.<br/> SOUNDBITE: Bruno Baronchietti, Rome resident, saying (Italian):<br/> "I think our image in the world is so bad that there is no way give any kind of confidence to foreign markets."<br/> SOUNDBITE: Franco Marini, Rome resident, saying (Italian):<br/> "We deserve it, if we continue like this we will end up like Greece and Argentina. It's time our politicians started waking up."<br/> Italy's government said in answer to the downgrade that it's working to reach its budget objectives.<br/> Italy's borrowing costs have soared over the past three months and have only been kept under control by the European Central Bank buying its government bonds.<br/> The downgrade comes as fears grow that a possible Greek default could trigger a crisis among the region's banks.<br/> Joanna Partridge, Reuters
