On Friday, Fitch affirmed Italy’s BBB rating but put the country on negative outlook (from stable) as a consequence of the political uncertainty, points out the research team at Danske Bank.
Key Quotes
“This was probably more or less in line with market expectations but may be seen as positive this morning, as it means the risk of any rating downgrades before end-September is low.”
“Despite Fitch’s decision to delay a downgrade, the Italian-German 10Y bond spread is still trading significantly out of line with European peers. The next key date is the release of the Ministry of Finance’s public debt and deficit projections on 27 September.”
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