Italy's BBB (stable outlook) credit rating....>

ITALY: Italy's BBB (stable outlook) credit rating at Fitch is set to be reviewed

on Friday with the fiscal uncertainty surrounding the new government leading to

speculation of a downgrade/move to a negative outlook.

- Italy's Repubblica news outlet reported (on Thursday) that Fitch's credit

worthiness report notes that Italy's gov't measures will total about EUR75bn and

that the planned spending may raise debt. The article also noted that reforms in

Italy are "increasingly difficult." Finally the piece stated that Fitch deems

the chances of Italy leaving the Euro as highly unlikely.

- It is worth remembering that Moody's recently extended its rating review of

Italy, noting that it wants "to get better visibility on the country's policy

direction. The rating agency usually aims to conclude rating reviews within a

time frame of three months. However, in this case, Moody's is extending the time

frame pending greater clarity on the country's fiscal path and reform agenda. It

will most likely conclude the review by the end of October at the latest."