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S&P Global Ratings is set to review Italy’s credit rating on Friday, which it currently ranks two notches above investment grade with a negative outlook. A downgrade would be a step toward potentially excluding the euro zone’s third-largest economy from the ECB’s refinancing and asset-purchase programs, precipitating a crisis. While the ECB’s current rules mean Italy would have to be cut to junk by each of S&P, Moody’s Investors Service, Fitch Ratings and DBRS to be excluded from its operations, the prospect of downgrades is unnerving investors. Governors expect collateral to be discussed on the call, the officials said, asking not to be identified as the meeting is confidential. An ECB spokesman declined to comment.
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