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Moody's ups outlook on banks, post office, govt fund

Also 19 local, regional bodies but not Naples or Molise

19 February, 13:00
Moody's ups outlook on banks, post office, govt fund (ANSA) - Rome, February 19 - Moody's on Wednesday affirmed the ratings and raised its outlook from negative to stable on six Italian banks and the government savings and investment bank Cassa Depositi e Crediti (CDP). The banks were UniCredit, Italy's biggest, Intesa Sanpaolo, Banca Imi, CariFirenze, Cariparma and UniCredit Leasing.

The ratings agency said the move was due to the "stabilisation of the merit of credit" and an improved outlook on sovereign debt.

The outlook was also raised for the Italian Post Office, insurance companies Generali and Unipol, energy group Acea, electrical power grid operator Terna and natural-gas infrastructure company Snam.

Moody's also raised its outlook for 19 cities, provinces and regions but not the southern Italian region of Molise, because of budget and health "uncertainty", and the city of Naples, because of budget problems recently highlighted by the Audit Court. On Friday Moody's upgraded its outlook on Italy's sovereign rating form stable to negative on the prospect of reforms led by a new government led by Matteo Renzi, helping bond yields fall to two-year lows this week.

Moody's said in a statement it had improved its outlook on the eurozone's third.largest economy on the back of Italy's resilient financial strength, sinking funding costs and diminished risk the state may have to use resources to help recapitalise its banks. It affirmed its rating at Baa2.