(MENAFN) Moody's Investors Service announced that it lowered the ratings of 13 Italian banks as they are largely exposed to the country's economy and to sovereign debt, reported Xinhua News.
The agency said that as a result of multiple channels of shared exposure and contagion, the banks are usually rated no higher than a government.
It added that ratings of 7 of those banks were reduced by 1 notch, whereas ratings of the remaining 6 were cut by 2 notches.
Moreover, 3 of the banks saw their short- term ratings slashed by 1 notch.
It is worth noting that four days ago, Moody's downgraded the bond rating of the Italian government from A3 to Baa2, raising concerns that it might not be able to aid its banks financially.
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