Downgrade for seven Italian banks, 15 in all for which the outlook has been converted to "negative". This is the latest move by Standard & Poor's, an inevitable consequence afterwards rating cut on Italian sovereign debt.
In detail, Intesa San Paolo, Mediobanca, Findomestic, Banca Imi, Biis, Cassa Risparmio di Bologna and Bnl were reduced from A+ to A. The Cassa Depositi e Prestiti, the financial arm of the Treasury, was also downgraded. The banks placed in a negative outlook are: Fideuram, Agos-Ducato, Credito Sportivo, Cr Parma and Piacenza, Unicredit and the subsidiaries Unicredit Bank ag, Bank Austria and Unicredit Leasing.
But it's not over yet. As stated in a note from the American agency, the decision “does not consider a review of a potential further deterioration in the operational and economic environment of the Italian banking sector. Weak operating conditions could influence our view of the economic and industrial risks affecting the Italian financial system, which we analyze as part of the banking industry country risk assessment (bicra) and therefore, probably, the creditworthiness for the Italian banks to which we give the rating”.
S&P downgrades led Piazza Affari to open sharply lower. A few minutes after the opening, the stock market is already in the red by almost two points.
