Overview
- Standard & Poor’s confirmed Italy’s sovereign rating at BBB+ and left the outlook at positive after its latest review.
- The agency pointed to gradual budget repair, with the deficit expected to drop below 3% of GDP in 2026 and the Superbonus home-renovation tax credits weighing less on cash flows.
- Recent checks by other firms stayed supportive, with DBRS holding A (low) with a stable trend, Scope keeping BBB+ with a positive outlook, and Fitch reaffirming BBB+.
- Moody’s in late March trimmed its 2026 growth forecast to 0.7% and lifted inflation to 2.1% because the war in the Middle East is pushing up energy costs.
- Higher oil and gas prices are straining households and public accounts, and Italian officials are pursuing EU budget flexibility to fund energy relief without new taxes.