Moody's downgrades 26 Italian banks

Ratings agency Moody's Investors Service has cut the long-term debt and deposit ratings for 26 Italian banks as the crisis in Europe clouds their prospects.

Moody's cut ratings by between one to four notches, highlighting the tough environments in Italy and Europe. The cuts have left Italian banks among the lowest rated in advanced European countries, Moody's said, reflecting a combination of adverse conditions, asset quality deterioration and restricted access to market funding. Banks impacted include UniCredit and Intesa Sanpaolo, Italy's two largest bank.  Both were given deposit ratings of A3 and a standalone bank financial strength rating of C-. Unicredit's credit assessment was baa2 while that of Intesa Sanpaolo was baa1. Mean...