(Corrects spelling of company name in headline)
MILAN, Nov 30 (Reuters) - Standard & Poor’s has downgraded Italy’s Piaggio, the maker of the Vespa scooter, to three notches below investment grade, citing the impact of weak economic conditions in Europe.
In a statement on Friday, the ratings agency said it had lowered its long-term credit rating on Piaggio by one notch to ‘BB-’ from ‘BB’ with a stable outlook.
S&P said the Italian company’s credit metrics would be weaker than previously expected and weak economic conditions in Europe, particularly in Southern Europe, were unlikely to support a recovery in these metrics in 2013.
Piaggio said in October net profit and revenue fell in the first nine months of the year as scooter and motorcycle sales contracted in Europe. (Reporting By Danilo Masoni; Editing by Gerald E. McCormick)