Will Blu-ray movies on the PS3 output at 720p?

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I've read reports stating that Blu-Ray movies on the PS3 will not downscale from 1080p to 720p, and instead upscale from 480p. This seems untrue, but not untrue enough to disregard, especially considering I've read less opposing this statement. I own an HDTV that can display 720p max, but can take input at 1080p (and handles the downscaling itself). It's not a huge deal if I have to keep changing the setting to 1080p when I want to watch a BD, but I'd rather just keep it on 720p.

To settle this once and for all, probably entirely for myself, does the PS3 output Blu-Ray movies at 720p without any upscaling from 480p?