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/RATINGS/BTPS: Citi give A Brief Primer On Impending Italian Ratings Updates

ITALY

Citi write “following the rating relief from S&P on 20 October, Fitch will tomorrow assess Italy’s BBB stable rating. However, the likelihood of any change seems low given Fitch expects Italy’s debt/GDP ratio to continue to decline in coming years, albeit at a slower pace than before the recent increase in deficit targets.”

  • “We think this is probably partly in the price, based on yesterday’s BTP spread tightening, but investor concerns persist around the Moody’s review on 17 November.”
  • “Overall, we expect limited market reaction to an unchanged rating/outlook on Friday.”
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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