S&P confirms Italy’s ‘BBB/A-2’ rating, stable outlook

S&P confirmed Italy’s long and short term rating at BBB/A-2 with a stable outlook. The agency reports this in a note.

“Italian GDP growth prospects are rosy. We expect the economy to grow by around 1% in 2024-2025 compared to 0.2% in the decade before the pandemic. This reflects growing labor participation, exports, lower energy costs, as well as our expectation that household savings rates will decline.” S&P states this in a note on Italy, explaining that “the expected acceleration of investments for the Pnrr will offset part of the decline in construction activity connected to the gradual elimination of Superbonus tax credits”, explains the rating agency for which the the greatest challenge remains public debt.

Fitch sees ‘positive’

Fitch raised Italy’s outlook from stable to ‘positive’, confirming the rating at BBB. The agency announced this. The positive outlook, explains Fitch, “reflects the fact that recent stronger public finance performances and commitment to EU rules indicate a potential reduction in medium-term fiscal and financial risks arising from exceptionally high debt levels of Italy. This is reinforced by signs of stronger potential growth and a more stable political environment.”