Fitch Keeps Italy at BBB+ Stable
Fitch reaffirmed Italy's credit rating at BBB+ with a stable outlook. The agency cites a strong economy offset by high debt.
Fitch Ratings confirmed Italy's sovereign credit rating at BBB+. The outlook remains stable. This marks the second confirmation of the year.
The agency cited a large and diversified economy. High value-added sectors support the rating. EU membership provides institutional stability.
High Debt Constrains Fiscal Space
Public debt remains a significant burden. Limited medium-term growth caps debt reduction. These factors restrict fiscal flexibility.
Deficit Improvement Expected in 2026
Fitch forecasts the budget deficit will drop to 2.9% of GDP. This compares to a 3.2% median for peers. Prudent spending and robust revenue drive this trend.
Energy and defence spending flexibility is limited. Allocations are below 1% of GDP. Actual costs are expected to stay lower than nominal targets.
Exit From Excess Deficit Procedure
Italy is expected to exit the excessive deficit procedure next year. This follows continued compliance with EU budgetary rules. The primary balance should improve by 0.3 points.
GN auto markets/bonds: sovereign debt notes long-term pressures persist. Ageing populations and interest charges remain key risks. Climate change costs also factor into the baseline.
