Standard & Poor's rating agency maintained Italy's credit ratings, but lowered its outlook to negative from stable.

The agency left the debt rating at BBB, two points above the garbage status.

"The parameters of the economic and fiscal policies of the Italian government affect the prospects for economic growth in the country, which is a critical driver of the trajectory of public debt to GDP," the report says.

The negative outlook reflects the risk associated with the government's decision to further increase government borrowing, which will weigh on the country's growth prospects.

"In our opinion, the government's planned economic and fiscal policy parameters have undermined investor confidence, as evidenced by the growth in government debt yields," Standard & Poor's warned.