S&P Global Ratings agency did not reduce credit rating of Italy leaving it at two points above junk, Bloomberg reports. Outlook was changed to negative. It happened just in time when the country is getting ready to another stage of struggle with EU in regards to the budget.

As a result, country’s bonds may grow today after they fell last week as Moody’s Investors Service reduced Italy’s rating, although keeping it at investment grade level.

The spread between Italy’s and Germany’s bonds yield widened in recent months to the highest level since the debt crisis of euro area.

We would like to remind that Italy has three weeks to correct and submit again its budget to EU, which was rejected earlier.

Banks of Italy still have 260 billion of non-performing loans left from the times of last crisis.