As warned late last year, the ratings service is taking a close look at all sovereign nations in the euro zone and is expected to issue its decision by the end of the month. When the European Central Bank convenes on Thursday, the body is likely to preserve interest rates at 1 percent, according to economists surveyed by Bloomberg.
Prime Minister Mario Monti of Italy and German Chancellor Angela Merkel are set to meet in Berlin on Wednesday, which one currency strategist said will be closely watched like the Thursday ECB meeting.
"That is, of course, unless talks today between German chancellor Merkel and Italian prime minister Monti fail to reassure investors on the debt crisis, which in turn may stoke risk aversion," states a Wednesday email from currency strategist Nomvuyo Guma with Standard Bank Group in Johannesburg, according to Bloomberg.
The Italian leader is prepared to ask for more aid from the European Union and Germany in return for profound austerity cuts effected by Italy, according to The Associated Press.
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