Delenda Carthago
15th May 2012, 06:10
Moodys cuts ratings for 26 Italian banks
By Vivianne Rodrigues in New York
http://im.media.ft.com/content/images/ed1cba04-3d30-11e1-ae07-00144feabdc0.img
Moodys Investors Service on Monday cut the long-term debt and deposit ratings for 26 Italian banks by one to four notches, highlighting the tough environments in Italy and Europe.
The ratings for Italian banks are now among the lowest in advanced European countries, Moodys said, reflecting a combination of adverse conditions, asset quality deterioration and restricted access to market funding.
More
On this story
Spanish banks eye four-way merger (http://www.ft.com/cms/s/0/32554f1a-9de3-11e1-9456-00144feabdc0.html)
In depth European banks (http://www.ft.com/indepth/europeanbanks)
UniCredit profits boosted by trading gain (http://www.ft.com/cms/s/0/5e36ecf2-9ab8-11e1-9c98-00144feabdc0.html)
Gloom falls on Italian lenders (http://www.ft.com/cms/s/0/1f3f9464-799c-11e1-b87e-00144feab49a.html)
Italian banks fall ahead of Moodys review (http://www.ft.com/cms/s/0/7fe151e4-9441-11e1-bb0d-00144feab49a.html)
On this topic
UK ready to back EU bank reform (http://www.ft.com/cms/s/0/63b617c6-9cfb-11e1-9327-00144feabdc0.html)
Spain in new bid to clear property assets (http://www.ft.com/cms/s/0/e3dbedea-9b66-11e1-b097-00144feabdc0.html)
The Top Line Triple whammy is pain for Spain (http://www.ft.com/cms/s/0/5836e434-9b3e-11e1-b097-00144feabdc0.html)
Spain offered time to curb deficit (http://www.ft.com/cms/s/0/7d1e63ec-9abe-11e1-94d7-00144feabdc0.html)
IN Banks
Dimon shakes up JPMorgan top team (http://www.ft.com/cms/s/0/ea70894c-9dcb-11e1-838c-00144feabdc0.html)
Lloyds chief picks final team member (http://www.ft.com/cms/s/0/af5b1cf6-9dca-11e1-9a9e-00144feabdc0.html)
JPMorgan probe into London role in loss (http://www.ft.com/cms/s/0/adc55f24-9d06-11e1-9327-00144feabdc0.html)
EU keeps tight rein on bank penalties (http://www.ft.com/cms/s/0/854ece66-9d12-11e1-aa39-00144feabdc0.html)
Recent efforts by the government and European Central Bank to extend financial support to struggling financial institutions have helped ease some of the pressure on Italian banks (http://www.ft.com/intl/cms/s/0/1f3f9464-799c-11e1-b87e-00144feab49a.html), the rating agency said.
However, with the countrys economy back in recession and government austerity measures hurting demand, problem loans and loan-loss provisions are rising, said Johannes Wassenberg, Moodys managing director for European banks.
If this limited access to funding persists, the pressure on banks to reduce assets may increase, posing risks to their franchises and earnings, Mr Wassenberg said.
Some of Italys largest financial institutions were covered in the review, including UniCredit (http://markets.ft.com/tearsheets/performance.asp?s=it:UCG) and Intesa Sanpaolo. (http://markets.ft.com/tearsheets/performance.asp?s=it:ISP) All of the banks affected now have a negative outlook, which may increase the likelihood of future downgrades.
UniCredit (http://www.ft.com/intl/cms/s/0/5e36ecf2-9ab8-11e1-9c98-00144feabdc0.html), the countrys largest bank by assets, had its long-term debt rating lowered one notch to A3. Milan-based Intesa, Italys second-largest lender, was downgraded to A3 from A2.
The downgrade followed a previous cut on February 13, when the agency lowered the rating of Italy and five other countries, including Spain. At that time, Italy was lowered to A3, and now stands four steps above junk. Fears over the ability of the eurozones firewall to shield some countries are being compounded by speculation Greece may leave the eurozone.
http://www.ft.com/intl/cms/s/0/db76e472-9e07-11e1-9a9e-00144feabdc0.html#axzz1uubtjTzZ
By Vivianne Rodrigues in New York
http://im.media.ft.com/content/images/ed1cba04-3d30-11e1-ae07-00144feabdc0.img
Moodys Investors Service on Monday cut the long-term debt and deposit ratings for 26 Italian banks by one to four notches, highlighting the tough environments in Italy and Europe.
The ratings for Italian banks are now among the lowest in advanced European countries, Moodys said, reflecting a combination of adverse conditions, asset quality deterioration and restricted access to market funding.
More
On this story
Spanish banks eye four-way merger (http://www.ft.com/cms/s/0/32554f1a-9de3-11e1-9456-00144feabdc0.html)
In depth European banks (http://www.ft.com/indepth/europeanbanks)
UniCredit profits boosted by trading gain (http://www.ft.com/cms/s/0/5e36ecf2-9ab8-11e1-9c98-00144feabdc0.html)
Gloom falls on Italian lenders (http://www.ft.com/cms/s/0/1f3f9464-799c-11e1-b87e-00144feab49a.html)
Italian banks fall ahead of Moodys review (http://www.ft.com/cms/s/0/7fe151e4-9441-11e1-bb0d-00144feab49a.html)
On this topic
UK ready to back EU bank reform (http://www.ft.com/cms/s/0/63b617c6-9cfb-11e1-9327-00144feabdc0.html)
Spain in new bid to clear property assets (http://www.ft.com/cms/s/0/e3dbedea-9b66-11e1-b097-00144feabdc0.html)
The Top Line Triple whammy is pain for Spain (http://www.ft.com/cms/s/0/5836e434-9b3e-11e1-b097-00144feabdc0.html)
Spain offered time to curb deficit (http://www.ft.com/cms/s/0/7d1e63ec-9abe-11e1-94d7-00144feabdc0.html)
IN Banks
Dimon shakes up JPMorgan top team (http://www.ft.com/cms/s/0/ea70894c-9dcb-11e1-838c-00144feabdc0.html)
Lloyds chief picks final team member (http://www.ft.com/cms/s/0/af5b1cf6-9dca-11e1-9a9e-00144feabdc0.html)
JPMorgan probe into London role in loss (http://www.ft.com/cms/s/0/adc55f24-9d06-11e1-9327-00144feabdc0.html)
EU keeps tight rein on bank penalties (http://www.ft.com/cms/s/0/854ece66-9d12-11e1-aa39-00144feabdc0.html)
Recent efforts by the government and European Central Bank to extend financial support to struggling financial institutions have helped ease some of the pressure on Italian banks (http://www.ft.com/intl/cms/s/0/1f3f9464-799c-11e1-b87e-00144feab49a.html), the rating agency said.
However, with the countrys economy back in recession and government austerity measures hurting demand, problem loans and loan-loss provisions are rising, said Johannes Wassenberg, Moodys managing director for European banks.
If this limited access to funding persists, the pressure on banks to reduce assets may increase, posing risks to their franchises and earnings, Mr Wassenberg said.
Some of Italys largest financial institutions were covered in the review, including UniCredit (http://markets.ft.com/tearsheets/performance.asp?s=it:UCG) and Intesa Sanpaolo. (http://markets.ft.com/tearsheets/performance.asp?s=it:ISP) All of the banks affected now have a negative outlook, which may increase the likelihood of future downgrades.
UniCredit (http://www.ft.com/intl/cms/s/0/5e36ecf2-9ab8-11e1-9c98-00144feabdc0.html), the countrys largest bank by assets, had its long-term debt rating lowered one notch to A3. Milan-based Intesa, Italys second-largest lender, was downgraded to A3 from A2.
The downgrade followed a previous cut on February 13, when the agency lowered the rating of Italy and five other countries, including Spain. At that time, Italy was lowered to A3, and now stands four steps above junk. Fears over the ability of the eurozones firewall to shield some countries are being compounded by speculation Greece may leave the eurozone.
http://www.ft.com/intl/cms/s/0/db76e472-9e07-11e1-9a9e-00144feabdc0.html#axzz1uubtjTzZ