Standard & Poor’s has downgraded seven Italian banks, including covered bond issuer Intesa Sanpaolo, after on Monday having cut their sovereign’s rating from A+ to A.

The rating agency yesterday (Wednesday) lowered from A+ to A the rating of Mediobanca, Findomestic Banca, Intesa Sanpaolo and two of its core subsidiaries, and Cassa di Risparmio in Bologna.

It also downgraded the long and short term counterparty credit rating of Banca Nazionale del Lavoro from AA- to A+.

The outlook is negative for the aforementioned banks’ ratings.

S&P said that it has also revised the outlooks from stable to negative on eight other Italian banks, including UniCredit SpA and its core subsidiaries, UniCredit Bank, UniCredit Bank Austria, and UniCredit Leasing.

“The negative outlooks on the long term ratings on the 15 banks reflect the possibility we could lower their ratings, all other things being equal, should we further lower our ratings on the Republic of Italy,” said the rating agency.

It added that yesterday’s rating actions and outlook revisions do not factor in a review of the potential further deterioration in the economic and operating environment of the Italian banking sector.

“The weakening operating conditions could influence our view of the economic and industry risks affecting Italy’s financial system, which we analyse as part of our Banking Industry Country Risk Assessment (BICRA), and, therefore, possibly, of the creditworthiness of the rated Italian banks,” it said.