Standard & Poor’s on Monday affirmed the ratings of 15 of Italy’s biggest banks, and has cut the ratings on 15 more lenders.
The U.S. credit ratings agency warned that Italy’s recession will be potentially more prolonged than previously thought. It said that while problem assets were mounting, many banks had reduced provisions for loan losses.
Investors are concerned that recession-hit Italy will find it more and more difficult to handle its debt burden and have been demanding higher interest rates on its bonds.
News Tribune news services
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