An international credit rating agency has lowered Italy's bond rating two notches, likely triggering an increase in what the country will have to pay to borrow money.

Italy's rating is now two notches above junk bond status.

Its the second downgrade for Italy in five months. Moody's Investors Service lowered the bond rating for Italy,Spain and Portugal, in February.

Moody's says Friday's downgrading , occurred because Italy's fragile economy is vulnerable to the financial struggles of Greece and Spain. The rating's service says they also took into account a deterioration in Italy's economy, and the likelihood that it will contract by 2 percent this year.

Moody's says Italy's bond rating could take another hit if the economy weakens, unemployment rises, or the government has problems implementing reform.