Moody's slashes Italian banks' credit ratings

Moody's has slashed its credit rating for a number of Italian banks by up to four notches.

The agency cites their vulnerability to recession and more trouble in the Eurozone.

All of the 26 banks have been put on negative credit watch, a warning that further downgrades are possible.

Moody's said the ratings for Italian banks are now amongst the lowest within advanced European countries, reflecting their susceptibility to the adverse operating environment in Italy and Europe.