(Adds expected yield, context)
By Michael Turner
LONDON, Jan 18 (IFR) - The Republic of Italy has started marketing a September 2033 euro benchmark BTP in its first market outing since having its credit rating cut by DBRS.
The sovereign is marketing the transaction at low 20s over the March 2032 BTP, according to a lead.
Banca IMI, Barclays, Credit Agricole, ING and NatWest Markets are arranging the Reg S/144A transaction.
Italy is rated Baa2/BBB-/BBB+ by Moody's/S&P/Fitch (negative/stable/negative). On Friday, DBRS cut its rating to BBB (high) from A (low). The outlook is now stable.
The rating agency cited uncertainty over the political ability to sustain structural reforms and the continuing weakness of Italy's banking system as major reasons for the downgrade. (Reporting by Michael Turner, Editing by Helene Durand, Julian Baker)