Moody's downgrades credit of 26 Italian banks
Moody's Investors Service has downgraded the ratings on 26 Italian banks as they struggled with the effect of government austerity measures.
The rating agency said Monday that the banks are suffering because Italy is back in recession and government austerity measures are cutting demand for loans.
The banks are struggling with more loan losses, limited access to funding and weaker profits.
Moody's noted that support of the European Central Bank lowered the default risk of many banks.
Its outlook for all 26 banks is negative.
