Overview

• Fitch said the higher rating reflects greater confidence in Italy’s fiscal path under the EU’s new budget framework and a reduction in funding risks.
• The agency projects a deficit near 3.1% of GDP in 2025 with gradual consolidation through 2027 driven by stronger revenue and spending control.
• Italy’s GDP is seen growing about 0.6% in 2025, while public debt is forecast to edge up to roughly 137.6% of GDP in 2026 due to policy adjustments tied to the superbonus.
• Economy Minister Giancarlo Giorgetti welcomed the decision, saying the government has put the country back on the right track.
• The move follows S&P’s April upgrade and Moody’s shift to a positive outlook in May, with fresh reviews due from S&P on October 10, DBRS on October 17 and Moody’s on November 21 after France’s recent downgrade to A+.