Moody's Just Threatened To Downgrade 18 Italian Banks

Italy Carnival

Photo: AP

Moody’s has threatened to downgrade 18 Italian banks, if they choose to downgrade the Italian sovereign, according to Reuters.The banks include some big names, like Intesa Sanpaolo, Banco Popolare Societa Cooperativa, and Banca Monte dei Paschi di Siena.

And it doesn’t look like the Italian sovereign will get its debt situation in check anytime soon. President Berlusconi just passed a stimulus package that will raise, not cut the country’s debt in the immediate term. And while that government spending may encourage growth, Moody’s isn’t concerned about that.

Don’t miss: The 20 institutions most exposed to a Greek debt crisis >

 

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.