Fitch Ratings: Italian bank ratings under pressure from sovereign risk

Italian banks face increased pressure on their ratings from sovereign-related risks, Fitch Ratings said in a report released this Friday.

Key highlights:

   •  Some Italian banks are likely to have experienced a meaningful decline in capital.
   •  A sovereign downgrade of Italy would likely to lead downgrades of BNL, Credem, Intesa, Mediobanca, Unicredit and Unipol Banca.
   •  Other Italian bank ratings would also come under pressure if refinancing conditions become more difficult or bank's assets weaken significantly.
   •  Expects the Italian bank's funding costs to increase in the medium term, second-tier banks more at risk.