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Back in recession: Moody’s downgrades 26 Italian banks

Published time: May 15, 2012 01:33
Edited time: May 15, 2012 05:53
Building at 7 World Trade Center (R) where the rating agency Moody's Invester Services, Inc. (AFP Photo / Stan Honda)

The Moody’s rating agency has downgraded the debt rating of 26 Italian banks, including the giant UniCredit, as the country struggles with recession, tough austerity measures and 1.9 trillion euros of outstanding public debt.

The agency said Monday that Italy is back in a recession, and government measures are cutting demand for loans, resulting in more loan losses and weaker bank profits. The outlook for all 26 banks is negative.

"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," Moody's said in a statement.

It however noted that the support from the European Central Bank lowered the default risk for many of the banks. Italian banks received 116 billion euros from the ECB's long-term refinancing operation in December and another 139 billion euros in February.

The long-term debt and deposit rating of 10 of the banks were lowered by one notch, another eight banks were lowered by two notches, six banks by three notches and two banks by four.

Italy’s largest banks UniCredit and Intesa Sanpaolo were both given deposit ratings of A3 and a standalone bank financial strength rating of C-. UniCredit's credit assessment was baa2, while that of Intesa Sanpaolo was baa1.

Comments (5)

Giano (unregistered) 15.05.2012 10:54

Italian newspapers didn't publish this news.... maybe the government is afraid of the people's reaction about its blatant failure in reassessing italian economy?
It's all about "grab the loot and run": Italy is being robbed of all its wealth, not only the banks (which have they own faults) but also the state-owned companies, and the primary resources. everything is being sold out, and then the country will go bankrupt and the robbers will move to another country.

+7

Undo

Bianca 15.05.2012 04:35

It is still not clear to many people --- including many naive people in media --- that the financial vampire is like Lord Voldemort.   It has caused so many wars and destruction in the past, and is now regaining its strenght for the new conquest.  And Voldemort has many enablers and servants.  Some serve knowingly, as the evil is in their blood, and cannot help it.  Others, out of fear for job, and yet others being convinced that it is the right thing to do.   But this time we many not be so lucky.  This monster we thought died in WWI.  Just before the war, it gained strenght,  imposed its rule over US with a naive academic Wilson, who gave the vampire the keys to our treasury.  Its collective stranglehold over France, England and UK, pushed feeble Austro-Hungarian Empire into an adventure, insuring its own demise.  The monster ravaged Russia though revolution, and in the end, triumphantly, rearanged the map of Europe and the world.  Voldemort was as the top of the world, and then came the inevitable:  by wanting more, brought the war on mankind.   So we thought it died in WWII, and it looked like for a while that the monster cannot reconsitute itself.  How wrong.  It came out of its cage when gold standard was abolished,  and has been gaining strenght ever since.  Again, the monster is at the top of the world, but it wants more, and more, and more.  This time, the monster may be too strong.   We may as well get used to living in the world without rules, and enjoy what we are tossed from the table above.  The vampire and his enablers will feast on our helplessness.

+5

Undo

New World Ordеr 15.05.2012 03:37

Now that Moody's is devaluating Western countries they are heroes on RT. Once they start devaluating Russia they will be Zionists working for the West. Same thing happened to Anonymous.

0

Undo

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