Credit ratings of 26-Italian banks cut by Moody's

WASHINGTON: Moody's has announced downgrade of its credit ratings by up to four notches for 26-Italian banks, consisting UniCredit and Intesa Sanpaolo.

A statement from Moody's said, “The ratings for Italian banks are now amongst the lowest within advanced European countries, reflecting these banks' susceptibility to the adverse operating environments in Italy and Europe. Banks are vulnerable to the renewed recession in Italy, given their already elevated levels of problem loans and weakened profitability. These risks are exacerbated by investor concerns over the sustainability of the Italian government's debt burden, which has contributed to the difficult wholesale funding conditions faced by Italian banks.”

The banks consisted of UniCredit, cut to A3 from A2, and Intesa Sanpaolo, lowered to A3 from A2.

Banco Monte dei Paschi was lowered two levels to Baa3; Banco Popolare Societa Cooperativa, declined to Baa3 from Baa2; and Unione di Banche Italiane, was downgraded two levels to Baa2 from A3.