Overview
- Italy’s sovereign rating rises from Baa3 to Baa2 with the outlook moved from positive to stable, marking Moody’s first upgrade since 2002.
- Moody’s points to fiscal prudence, policy continuity and strong progress on EU recovery-plan milestones as key drivers of improved creditworthiness.
- The agency says Italy’s high debt could start declining from 2027 if growth holds and primary surpluses strengthen.
- The decision caps a 2025 series of upgrades by S&P, Fitch, DBRS and Scope, which analysts say may lower borrowing costs.
- Economy Minister Giancarlo Giorgetti welcomed the move as a vote of confidence, while analysts note a 2025 deficit target near 3% could support an earlier exit from the EU excessive‑deficit procedure.