Standard & Poor's cuts ratings on 18 Italian banks citing prolonged high cost of funding

Ratings agency Standard & Poor’s has cut its ratings on 18 Italian banks, citing increased industry risks from a sustained higher cost of funding than in most other eurozone banking markets.

It added that it doesn’t see Italy’s downward per capita GDP trend reversing in 2014.

The rating cuts complete a review initiated after S&P downgraded Italy’s sovereign rating to BBB from BBB+ at the beginning of the July.

S&P highlighted the increased economic risks for the banks in question given Italy's deeper and longer than expected recession.

UniCredit and Intesa Sanpaolo, both BBB/Negative, were not included as their ratings had been cut immediately after the sovereign downgrade.