Credit downgrades usually lead to upheaval in the bond or credit protection markets, particularly with southern European countries such as Greece and Spain. The threat of a downgrade to Italy, however, has barely raised an eyebrow.

The cost to insure €10m of Italian sovereign bonds rose by just €3,000 to €174,000 on Monday after Moody's on Friday placed the sovereign debt rating for the country on negative review, citing weak economic growth and high interest rates.