EUR traders heads up - Friday could be a big day - Italy credit rating review

Standard and Poors will release its updated assessment of Italy's sovereign rating.

Currently:

• Fitch and S&P have Italy at IG status, but a negative outlook
• Moody's has Italy on an IG rating also, but with a stable outlook

S&P's announcement will impact on holders of Italian sovereign binds, BTPs.

• ECB & Bank of Italy hold around EUR375bn (circa 19% of total outstanding)
• Foreign ownership is around 32% (down from around 47% in 2011)

A downgrade from S&P would have a negative impact on EUR. An upgrade to the outlook would be a positive.