Moody's Investors Service downgraded 26 Italian banks Monday as they struggled with that nation's weak economy and with government austerity measures dampening demand for loans.
The firm said it based the new ratings on a number of criteria and separated the banks into four groups.
1. Two banks, UniCredit and Intesa Sanpaolo, together account for almost one-third of the Italian market. All their Moody's ratings remain at investment grade, and their assets are stronger, thanks to more solid, diversified business.
2. Next are six banks with ratings at the lower end of investment grade, "Baa3" or higher. They are better positioned than most of their peers to cope with the recession. This group includes the country's fifth-largest bank, Unione de Banche Italiane.
3. Seven banks with credit assessments at the high end of junk territory, "Ba1," face more significant challenges. This can include a combination of weak capital, insufficient internal capital and funding constraints.
4. The final group includes 11 banks with standalone credit assessments below "Ba1." They face more substantial challenges, often due to asset quality, capital or funding issues. This group includes the country's third-largest bank Bankca Monte Dei Paschi.
MSNBC noted for 'spectacular botching' of headline on Pope Francis and abortion
Katie Pavlich - Exposing The Black Lives Matter Movement For What It Is: Promotion of Cop Killing
The Situation With Kim Davis | RedState
Megyn Kelly gets angry: Why don’t the left’s “civility” rules apply to Black Lives Matter protesters? - Hot Air
Nick Adams - Not a Single Illegal Immigrant in 7 Months... In Australia
How to Write a New York Times Op-Ed in Three Easy Steps | Human Events
10mm Underwood Extreme Penetrators Vs Bulletproof Glass - Bearing Arms - 10mm, Underwood, Video