Italian Judge Giulia Pavese today acquitted the credit agency Standard & Poor's (SPGI) - Get Report along with five of its former and current managers of market manipulation charges relating to downgrades of the country's sovereign debt, according to Reuters

Ratings agencies have been scrutinized in Italy for slashing ratings in 2011 and 2012, piling on additional pressure after financial and political nerves sent borrowing costs upwards.

Italian prosecutor Michele Ruggero alleged that agency reports and ratings changes on Italy and its banking system were mismanaged during the debt crisis, prompting steep losses on Milan's stock market.

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Ruggero sought jail sentences of between two and three years and fines of up to 500,000 euros ($536,900) for the officials and a 4.6 million euro fine for the agency.

"We did everything we could. Now we will wait to read the court's reasons for the verdict and decide whether to appeal or not," Ruggero said on Thursday.