Italy Faces 50-50 Risk of Being Downgraded by S&P, Deutsche Says

  • Move would bring agency in line with Moody’s, Fitch Ratings
  • Market reaction would depend on investor positioning, ECB
Photographer: Camilla Cerea/Bloomberg
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Whether or not S&P Global Ratings downgrades Italian debt this week is a coin toss, according to Deutsche Bank AG.

“We think it’s a 50-50 call as both an unchanged outlook as well as a downgrade could be justified,” wrote Ioannis Sokos, a strategist at Deutsche, citing S&P’s outlook criteria from AprilBloomberg Terminal.