S&P; cuts ratings of 15 Italian banksAugust 4th, 2012 - 3:22 pm ICT by IANS
New York, Aug 4 (IANS) Standard & Poor’s Ratings Services has cut the ratings for 15 Italian banks, citing a potentially deeper and more prolonged recession in Italy than originally anticipated.
The ratings firm said the downgrading reflected “our view of increased credit risk for the Italian economy and its banks”, reported Xinhua.
The agency revised the economic risk score for Italy, one of the main components of its Banking Industry Country Risk Assessment, to five from four.
“With Italy facing a potentially deeper and more prolonged recession that we had originally anticipated, we are of the view that the vulnerability of Italian banks to the impact of rising loan losses has increased due to the combined effect of mounting problem assets and reduced coverage of loan loss reserves,” S&P; said in a statement.
The firm now thought a severe recession likely would increase Italian banks’ problem assets in 2012 and 2013 to levels higher than previously anticipated, and higher than other banks in Europe.
Banks like Unione di Banche Italiane, Banca Popolare dell’ Emilia Romagna and Banca Popolare di Vicenza saw their ratings downgraded.
- Moody's downgrades Italy debt rating - Jul 13, 2012
- Moody's cuts credit ratings of 16 Spanish banks - May 19, 2012
- Moody's cuts 26 Italian banks' ratings - May 15, 2012
- Moody's downgrades 13 Italian banks - Jul 17, 2012
- Cops raid world's oldest bank - May 09, 2012
- Fitch downgrades 18 Spanish banks - Jun 12, 2012
- Fitch downgrades JPMorgan Chase after huge loss - May 12, 2012
- Ex-chief of Italy's central bank sentenced for four years in jail - May 29, 2011
- Italy's industrial output suffers steep October decline - Dec 09, 2011
- 6,000 displaced in Italy quake - May 22, 2012
- US stocks rally led by banks - Jun 23, 2012
- 100-year-old woman killed in Italian quake (Lead) - May 20, 2012
- 18th century tower crumbles in Italy - Jun 04, 2012
- S&P; downgrades 34 Italian banks - Feb 11, 2012
- Canada holds bank rate at 1 percent - Jan 18, 2012
Tags: amp, banca popolare di vicenza, banche italiane, banking industry, country risk assessment, credit risk, dell, economic risk, emilia romagna, italian banks, italian economy, italy, loan loss reserves, loan losses, popolare di vicenza, problem assets, recession, risk score, vulnerability, xinhua