S&P upgrades Italy's credit rating to BBB+
In a statement, S&P said it was upgrading the European Union's third-largest economy from BBB to BBB+, while keeping its outlook stable
The US ratings agency S&P on Friday upgraded Italy's credit rating, noting its "improved economic, external, and monetary buffers amid rising global headwinds."
In a statement, S&P said it was upgrading the European Union's third-largest economy from BBB to BBB+, while keeping its outlook stable.
The upgrade leaves Italy's debt in investment-grade territory, but still several rungs away from Germany, Britain, and France, Europe's largest economies.
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Alongside the improved economic buffers, S&P also noted the Italian government's "gradual progress" in stabilizing the public finances since the Covid-19 pandemic.
"Italy's underlying budgetary position is improving," S&P said, noting the country recorded a primary budget surplus of 0.4 percent of GDP last year for the first time since the onset of the pandemic.
S&P said Italy "will continue to face substantial structural challenges," including an aging population, low productivity compared with regional peers, and weak foreign direct investment.
The decision assumes that the United States will keep its current 10 percent "baseline" tariffs against the European Union in place, along with sector-specific levies of 25 percent on steel, aluminum, and automobiles.
Under those assumptions, the eurozone's economic output could decline by around 0.2 percent, S&P said.
