Fitch says it may cut 7 Italian banks

SAN FRANCISCO
Fitch Ratings said Tuesday it placed seven Italian banking groups' long-term issuer default ratings and viability ratings on rating watch negative.
The move follows the rating agency's decision on December 16 to put Italy's sovereign rating on rating watch negative.
Fitch said it put the banks on watch because it believes pressure on their earnings, funding, liquidity, asset quality and capitalization was likely to increase in Europe's tough operating environment.
The banks affected are Banca Monte dei Paschi di Siena, Banca Popolare di Sondrio, Banco di Desio e della Brianza, Banco Popolare, Iccrea Holding, Intesa Sanpaolo and Unione de Banche Italiane - UBI Banca.