MILAN (Reuters) - Rating agency Standard & Poor's cut its credit ratings on the two biggest Italian banks, UniCredit
Ratings for UniCredit SpA, the parent company of UniCredit, and the long-term rating of Intesa Sanpaolo, were lowered to 'BBB' from 'BBB+', both with a negative outlook, the two lenders said on Friday.
The moves followed an S&P downgrade of Italy's sovereign credit rating to BBB from BBB+, with a negative outlook, on Tuesday.
In a separate statement, S&P said it also downgraded Mediobanca
"We expect to resolve the creditwatch placements over the coming weeks," said the ratings agency.
Together with its downgrade, S&P revised down its economic outlook for Italy, projecting growth to contract 1.9 percent this year, compared with the government's forecast for a 1.3-percent fall in output.
(Reporting by Francesca Landini; Editing by Jennifer Clark, Steve Scherer and Bernadette Baum)