Moody's slashes rating for 13 Italian banks

WASHINGTON: Global rating agency Moody's downgrade the credit ratings for 13 Italian banks, viewing the weak standing of the Italian government after its credit grade was downgraded last week.

The ratings slashed by one to two notches, with Unicredit and Intesa Sanpaolo both falling to Baa2 from A3.

The lower rating on the government signifies that Moody's believe that it is at greater risk of defaulting on its debts and “indicates a similarly increased risk that the government might be unable to provide financial support to its banks in financial distress.”

“Today’s actions follow the weakening of the Italian government’s credit profile. Along with the increase in the risk of sovereign bond defaults, the downgrade of Italy’s long-term ratings to Baa2 also indicates a similarly increased risk that the government might be unable to provide financial support to its banks in financial distress,” as per the statement issued by Moody's.