Moody\’s downgraded 26 Italian lenders on Monday night saying the slump itself is the killer, joining a chorus of voices warning that too much austerity may be self-defeating. \”Banks are vulnerable to the renewed recession in Italy, given their already elevated levels of problem loans and weakened profitability,\” it said. Moody\’s expects the economy to contract 1.9pc this year.
The Italian Banking Association ABI accused Moody\’s of an \”irresponsible, incomprehensible, and unjustifiable\” smear. \”Moody\’s decision is an attack on Italy, its companies, its families and its citizens,\” it said, calling on the EU authorities to clamp down \”severely\” on rating agencies.
For if there were no Moody\’s pointing such things out then such things would not be happening, would they?