Fitch downgrades several Italian banks|
Rating agency Fitch downgraded the long-term debt ratings for several Italian banks including Banco Popolare and Banca Monte dei Paschi di Siena, which were cut from "BBB+" to "BBB", and Intesa Sanpaolo, which was cut from "A" to "A-".
On the other hand, Fitch confirmed its "A-" rating for UniCredit, Banca Popolare di Sondrio and Banco di Desio e della Brianza.
According to Fitch, these rating actions are on the backs of the downgrade of Italy's sovereign debt on January 27 "given the close link between bank and sovereign risk." It claimed that "the key factors that drove the Italian sovereign action also contributed to the downgrades and Negative Outlooks on the Italian banks."
The rating agency expects a marked deteriorating in Italy's near-term economic outlook. It expects 1.7% GDP contraction in 2012 and "modest growth" of 0.2% in 2013.
Banco Popolare is now down 0.14% to €1.45 per share; Banca Monte dei Paschi di Siena is down 1.35% to €0.33; and UniCredit is up 2.1% to €4.27.