MILAN, Italy - Sseptember 21, 2011 - Standard & Poor’s cut the credit ratings of leading Italian banks Mediobanca and Intesa Sanpaolo to A/A-1 from A+/A-1 on Wednesday, following the agency’s one-notch downgrade of Italy’s sovereign debt.

S&P cut the long-term ratings of seven Italian banks with a negative outlook, it said in a statement, and lowered its outlook to negative from stable on eight other Italian banks, including Italy’s largest banks by assets, UniCredit.

“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,” S&P said.

S&P cut Italy’s credit rating earlier this week, in a surprise move that increased strains on the debt-stressed euro zone, citing sluggish economic growth and a large public debt.