SEB Bank: Italy to face Fitch rating review test

SEB Banks analyst suggest that the Italian economy will face another test of confidence on Friday as rating agency Fitch will conduct a rating review on 22 Feb.

Key Quotes

“Even in the event of a one- notch downgrade (for which we see a 55% chance) we expect only a subdued negative short-term market reaction, given the current risk appetite of carry-hungry short-term buyers as well as the remaining two-notch distance from the rating cliff with S&P and DBRS.”