Moody’s Investors Service cut down the ratings of 26 Italian banks for one to four grades, because the Italian economy has fallen back into the recession cycle, and the bank’s operating environment is deteriorating.
Moody’s downgraded the independent credit rating of UniCredit Bank from “Baa1″ to “Baa2″, and cut the independent bank financial strength rating of Intesa Sanpaolo from “C” to “C-”. The two banks aggregately account for one third of the Italian banking sector market share.
Moody’s said in a statement that the current ratings of Italian banks are the lowest among the developed European countries, reflecting the sensitivity of these banks on the negative operating environment in Italy and Europe.
Other banks with a minimum rating include Banca Monte Dei Paschi (BMPS), Banco Popolare (BP), and Unione di Banche Italiane (UBI).