Italy Banking Assoc: Moody's Cut Is Irresponsible, Unjustified

ROME -(Dow Jones)- Italy's banking association, or ABI, Tuesday said that the decision by Moody's Investors Service Inc. to downgrade a raft of Italian lenders is irresponsible and unjustifiable, adding that it is further destabilizing financial markets.

Late Monday, Moody's downgraded 26 Italian banks by one to four notches each.

The credit rating firm's reasons for the cut are also contradictory, said ABI, as it cites the government of Prime Minister Mario Monti's austerity measures as one of the motives of the downgrade while they were the same steps that such firms encouraged.

The downgrade is an "aggression" to Italy, its companies, its families and citizens, ABI added.