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Gathering attention on the Fitch review of.....>

EGBS
EGBS: Gathering attention on the Fitch review of Portugal this coming Friday. 
- Strategists at Nomura point out that "a one notch upgrade would enable PGBs to
be included in most IG government indices". This would follow the largely
unexpected upgrade by S&P to investment grade back in September. If Fitch stays
its hand, then Moody's would provide a second chance of another rating agency
hike to IG, although there is no ratings decision this year. 
- Morgan Stanley strategists "expect Fitch to upgrade Portugal to IG on December
15, and Moody's may follow soon after." They also believe that Spain's economic
fundamentals would also justify an upgrade to A-. 
- Morgan adds, "The trend of rating upgrades is supportive for peripheral
spreads. We suggest to remain long 10y Spain and Italy versus France and Germany
on a beta-weighted basis, and ease into long 10y PGB versus Bunds ahead of the
rating review."

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