Moody's downgrades Italian banks

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Moody's downgrades Italian banks

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Moody’s has cut the credit ratings of a string of Italian banks.

They include Intesa SanPaolo and Unicredit, who were downgraded from A3 to Baa2 – matching the country’s sovereign rating which was lowered on Friday to two notches above junk status.

Ratings were also slashed for companies and local government authorities.

Italian banks have come under pressure in recent weeks because of a spreading debt crisis and are seen as vulnerable because of their vast holdings in Italian government bonds.

Moody’s said the country’s long term resolve to push through much needed reforms, combined with worries about Spain and Greece, were increasing its liquidity risks.