Twenty-Six Italian Banks Downgraded
- Posted on May 15, 2012 at 8:12am by
Jonathon M. Seidl
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Editor’s note: be sure to get the morning‘s most important financial news every day from The Blaze’s Morning Market Roundup
(The Blaze/AP) — Moody‘s Investors Service downgraded 26 Italian banks Monday as they struggled with that nation’s weak economy and with government austerity measures dampening demand for loans.
The firm said it based the new ratings on a number of criteria and separated the banks into four groups.
1. Two banks, UniCredit and Intesa Sanpaolo, together account for almost one-third of the Italian market. All their Moody’s ratings remain at investment grade, and their assets are stronger, thanks to more solid, diversified business.
2. Next are six banks with ratings at the lower end of investment grade, “Baa3” or higher. They are better positioned than most of their peers to cope with the recession. This group includes the country’s fifth-largest bank, Unione de Banche Italiane.
3. Seven banks with credit assessments at the high end of junk territory, “Ba1,” face more significant challenges. This can include a combination of weak capital, insufficient internal capital and funding constraints.
4. The final group includes 11 banks with standalone credit assessments below “Ba1.” They face more substantial challenges, often due to asset quality, capital or funding issues. This group includes the country’s third-largest bank Bankca Monte Dei Paschi.
That news comes as Europe is facing a turnover of the elected officials who have held the Eurozone together. Both German Chancellor Angela Merkel and French President Nicholas Sarkozy faced defeats recently.
But Merkel is insisting that a heavy state election defeat for her party in Germany‘s most populous region won’t weaken her as she grapples with a deepening European debt crisis.
Merkel also said Monday that she is “very relaxed” about national elections due in late 2013.
On Sunday, Merkel’s conservative Christian Democrats slumped to their worst election result in North Rhine-Westphalia state since World War II, while voters strengthened a regional government that the party had portrayed as irresponsibly spendthrift. The outcome gave new confidence to Germany’s center-left opposition.
But Merkel – insisting the election results were not about her record – said that her “work in Europe is not affected” by what she conceded was “a bitter, painful defeat.”
Sarkozy loss to proud Socialist Francois Hollande.
For more must-read financial news from Europe, check out Tuesday’s Morning Market Roundup.
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Netsurfer2
Posted on May 15, 2012 at 9:43pmI’ll give you 50 cents for a Euro… LOL
(Not like you have much resources to sell)
Report Post »Netsurfer2
Posted on May 15, 2012 at 9:40pmAhhhhhh… you guessed it! The dominoes are falling and now one knows where to pick up the pieces! There will be a serious period of problems coming up! Mark my word that they will try to impose it on the US economy even more! We bailed them out with our money that we borrowed, now it’s payback time!
Not like we really have any choice now, do we?
Gamble and find yourself in trouble! It always ends up that way!
Get out of debt America and store food to last! There is nothing that will stop this wave and it’s coming to America very soon!
Report Post »Mikev5
Posted on May 15, 2012 at 2:49pmSocialism will always be a failure in the start it sounds like nirvana but as they say sooner or later the money runs out and the reality that they were duped sinks in.
They also will realize they gave up all there freedoms to get this nirvana and will need to fight like hell to gain it back only then is the full extent of what this socialist nirvana cost them.
Report Post »Mikev5
Posted on May 15, 2012 at 2:39pmThe EU will is on the start of a rapid down fall and nothing can stop it it will happen most in the EU think it will be a smooth easy slow falling apart THEY ARE NUTS if they think it’s going to be anything but screaming and anger as the reality of things FINALY sink in.
They will be flooding the streets in anger just like Greece as they see the gravy train leaving the station without them then leaving them holding the BIG FAT BILL.
Report Post »TH30PH1LUS
Posted on May 15, 2012 at 2:37pmIMO Italy never recovered from WWII. They kept electing European style socialists again and again and the Lira has never regained strength.
Anyone who has been to Italy can see the huge gap between the poor (at least by American standards) and the rich. 69% in their economy is in the “service sector” (aka tourism). If that dries up…
Report Post »Apple Bite
Posted on May 15, 2012 at 2:08pmItaly, just send all your beautiful women to the U.S. Don’t let them waste away, plenty of American men will welcome them with open arms…
Report Post »Individualism
Posted on May 15, 2012 at 11:34amthe bankers are soon going to get whats coming to them.
Report Post »Jaycen
Posted on May 15, 2012 at 1:00pmAnd why not, they write their own regulations, right? Banking rules don’t flow from the central bank, do they?
Before hitching your wagon to Ron Pauls star, you might want to educate yourself just the “tiniest” bit regarding economics and banking.
Report Post »DAYWATCHER
Posted on May 15, 2012 at 10:22amThe Germans will once again be the bad guys for simply looking out for their nation. It is simply a matter of time before the entire system comes crashing down and a new global currency is thrust upon us.
I have several questions:
1. How long will the chaos last once the system fails?
2. A week, a month or longer?
3. Will Americans bow down to a new economic system without suffering for an extended period of time?
These are but a few things that each of us should consider before the chaos starts.
I’m just saying…
Report Post »JRook
Posted on May 15, 2012 at 10:35am“Editor’s note: be sure to get the morning‘s most important financial news every day from The Blaze’s Morning Market Roundup” That‘s ok I’ll stick with CNBC.
Report Post »Jaycen
Posted on May 15, 2012 at 1:04pmAn EU crash won’t translate into a U.S. crash. It’ll just drag us deeper into recession. Right now, I don‘t even think we’re looking at a “EU crash” in terms of a total collapse. I think the EU will break up, simply for survival if nothing else. The more solvent countries will not let the losers drag them into a sink hole. Just watch. It’s already happening.
Have you not seen for months the articles saying how impossible it would be for Germany to extricate himself (they call it the Fatherland over there) from the EU? Then we see yesterday an article that expounds on how easy it would be to push Greece right on out of the EU.
Huh, really difficult for Germany to leave, but really easy for Greece to leave. So many difficult rules, so hard to understand….unless it all about money, and then the rules are crystal clear – If you’re propping us up, you must stay. If you’re dragging us down, you must go.
Report Post »shogun459
Posted on May 15, 2012 at 9:56amSkip taking a deep breath, You better have scuba tanks to survive what’s comming.
Report Post »I can hear Niagra Falls and it’s a lot closer than you think.
f_the_commies
Posted on May 15, 2012 at 9:56amI’ll give u 3 dollars for a Euro.
Report Post »budzy1911
Posted on May 15, 2012 at 9:48amWhat a lot of people don’t understand is that as each one of these countries begins crashing, each one will tug on our country’s economy just a little more. These bail-outs and quantitative easing measures are catching up with the world.
Sadly most will not be ready.
Report Post »trotula
Posted on May 15, 2012 at 9:34amI recently vacationed in Britain, and my kids found a Euro. They thought it was a Chucky Cheese token. Not too far from the truth.
Report Post »Snowleopard {gallery of cat folks}
Posted on May 15, 2012 at 8:42amEU hear me well; the final death knell is sounding – run while you can.
Report Post »cemerius
Posted on May 15, 2012 at 8:39amHa Ha Ha the world is playing Monopoly, but, this game has life and death consequences!! CLP is a great component to be added to ANYone’s “go bag”! The importance of cleaning and oiliing your guns is another life or death consequence……
Report Post »Seagal45
Posted on May 15, 2012 at 8:33amStop the spending!!!
Report Post »AxelPhantom
Posted on May 15, 2012 at 8:22amA mark, a yen, a buck, or a pound
A buck or a pound
A buck or a pound
Is all that makes the world go around,
That clinking clanking sound
Can make the world go ’round
CABARET – MONEY LYRICS
Report Post »RightPolitically
Posted on May 15, 2012 at 8:15amThe end is near OVER THERE!
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