Overview

• Moody's has revised Italy's credit outlook from stable to positive while maintaining the Baa3 rating, citing enhanced fiscal performance and political stability.
• The agency noted that Italy's debt trajectory is expected to decline gradually from 2028, following a short-term rise due to prior fiscal measures.
• Key factors supporting the positive outlook include a robust labor market, strong household and corporate balance sheets, and a healthy banking sector.
• The Italian government attributes the upgrade to its disciplined fiscal policies, including reduced public spending and increased tax revenues in 2024.
• This marks the latest in a series of positive assessments from major rating agencies, reflecting growing international confidence in Italy’s economic management.