Some market focus on the sovereign rating.....>

ITALY: Some market focus on the sovereign rating review for Italy from S&P

(currently BBB) due today (timing is usually after market close, at circa

2100BST/1600ET).

- At S&P, Italy currently sit two notches above junk, but the market relevance

of any downgrade may be limited given the ECB's move to accept junk-rated bonds

as collateral at their funding operations. The review comes as the Italian

government downgrade their growth and debt projections amid the COVID crisis.

The government's E50bln stimulus plans comes alongside forecasts of a budget

deficit of 10.4% of GDP this year, with real GDP contracting by 8%.

- Markets haven't been deterred from Italian debt yet, with this week's 5y / 30y

dual tranche bond syndication showing plenty of demand.

- Italy currently rated Baa3 at Moody's, BBB at Fitch. Yesterday, Moody's

suggested that it would not cut Italy to junk at its upcoming review,

highlighting the temporary nature of the COVID crisis on public finances.

- Other rating updates due today include Fitch on Netherlands, S&P & DBRS on

Greece & S&P on UK.