Standard and Poor’s (SP) has taken rating actions on over 30 Italian financial institutions due to an expected recession in the country, the international ratings agency said in a statement.
It said the actions include affirming counterparty credit ratings on 15 entities, lowering ratings on 15, removing the ratings on four from CreditWatch negative, and revising the outlook on one.
“The rating actions reflect our view of increased credit risk for the Italian economy and its banks,” SP said.
“With Italy facing a potentially deeper and more prolonged recession than we had originally anticipated, we think Italian banks’ vulnerability to credit risk in the economy is rising,” the agency said.