Chinese rating agency, Dagong Global Credit Ratingdowngraded the Italian debt ranking to BBB from A- on negative outlook for growth prospects, where the agency explained that yields will continue to incline as long as European leaders find no solution and the debt crisis continues to worsen.

The Agency also maintained a negative outlook on Italian credit ranking.Dagong also said that Italy's bond yields will continue to rise due to a worsening economic and financial environment and that will give a heavy blow to Italy that is relying on external borrowing.

Recently, the U.S rating agency, Moody's cut the Italian sovereign debt ranking to A2 from Aa2 before two months, while Italy maintained it's A credit rating at Standard and Poor's. Both agencies maintained a negative outlook on Italian debt.