Standard & Poor's has today affirmed the ratings of 15 of Italy's biggest banks, and has cut the ratings on 15 more lenders.
The US credit ratings agency warned that Italy's recession will be potentially deeper and more prolonged than previously thought.
It added that while problem assets were mounting, many banks had reduced provisions for loan losses, making them more vulnerable.
Investors are concerned that recession-hit Italy will find it more and more difficult to handle its debt burden - about 123% of its €1.58 trillion gross domestic product.
They have been demanding higher interest rates on its bonds.
The ratings of UniCredit and Intesa Sanpaolo were confirmed by S&P. They were among 34 banks that had their S&P ratings downgraded in February due to the country's financial vulnerability and expectations of lower earnings.
Banca Carige, Banca Popolare dell'Alto Adige and Unione di Banche Italiane, among others, also saw their ratings reduced further.
They have been demanding higher interest rates on its bonds.
The ratings of UniCredit and Intesa Sanpaolo were confirmed by S&P. They were among 34 banks that had their S&P ratings downgraded in February due to the country's financial vulnerability and expectations of lower earnings.
Banca Carige, Banca Popolare dell'Alto Adige and Unione di Banche Italiane, among others, also saw their ratings reduced further.
