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Moody's places 12 Italian banks' ratings on review for downgrade

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Moody's places 12 Italian banks' ratings on review for downgrade

Moody's on May 30 placed certain ratings of 12 Italian banks on review for downgrade, following a recent similar action on Italy's Baa2 long-term issuer and senior unsecured bond ratings.

The rating agency placed under review the A3 long-term bank deposit ratings of Intesa Sanpaolo SpA, Banca IMI SpA, Mediobanca - Banca di Credito Finanziario SpA, Crédit Agricole Group's Crédit Agricole Cariparma SpA, FCA Bank SpA and Cassa Centrale Raiffeisen dell'Alto Adige SpA.

Banca del Mezzogiorno - MedioCredito Centrale SpA's Baa3 long-term issuer rating and Cassa Centrale Raiffeisen's Baa2 long-term issuer rating were also placed on review for downgrade, along with Cassa depositi e prestiti SpA's Baa2/P-2 long- and short-term issuer ratings and Baa2 senior unsecured debt rating and the Baa2 long-term issuer and senior unsecured debt ratings of Invitalia SpA.

Additionally, Moody's placed on review for downgrade the Baa1(cr) long-term counterparty risk assessments of UniCredit SpA, Intesa Sanpaolo, Banca IMI, BNP Paribas SA's Banca Nazionale del Lavoro, Mediobanca, Credit Agricole Cariparma, Credito Emiliano SpA, FCA Bank and Cassa Centrale Raiffeisen.

The review on the bank deposit ratings, the issuer and senior unsecured debt ratings of Cassa Depositi e Prestiti and the long-term counterparty risk assessments were based on the review for downgrade of the sovereign's rating.

The review on downgrade of Invitalia's issuer and senior unsecured rating reflects the agency's public policy mandate, the very high level of the Italian government's involvement in the group and Moody's strategic importance for the government.

The review on Cassa Centrale Raiffeisen's issuer rating also reflects the potential for higher loss-given-failure on senior debt after the forthcoming consolidation with the network of mutual banks in Raiffeisen's region. The rating agency will seek more clarity on the group's consolidated assets, its future liability structure and funding plans during its review of the bank.

Meanwhile, Moody's noted that it will reassess UniCredit's positive outlook should the review on Italy's sovereign debt rating result in a downgrade.