Moody's blasted for downgrading 26 Italian banks ABI says move 'irresponsible, unjustifiable'

(ANSA) - Rome, May 15 - Italian banking association ABI on Tuesday blasted the Moody's rating agency for downgrading the long-term debt and deposit ratings for 26 of the nation's banks.



The agency said the recession Italy is enduring and government austerity measures that are hitting short-term demand were factors that contributed to the downgrades.



Italy's two biggest banks, Unicredit and Intesa Sanpaolo, both saw their deposit ratings drop to A3 from A2. The rating of the third biggest, Monte Dei Paschi di Siena, went from Baa1 to Baa3. ABI described the downgrades as "irresponsible, incomprehensible (and) unjustifiable.



"It is an (act of) aggression on Italy, on its companies, on its families and on its citizens," added ABI.



"Once again the rating agencies have proven to be an element of market destabilisation with partial, contradictory judgements".

Pier Ferdinando Casini, the leader of a coalition of centrist political parties called the 'Third Pole', went even further.

"Moody's decision is of unprecedented seriousness," Casini said. "The ratings agencies have a criminal design against Italy and against Europe".