Moody's has upgraded Italy's rating to 'Baa2', reflecting political stability under Prime Minister Giorgia Meloni and economic improvements.

Italy obtained on Friday its first credit rating upgrade from Moody's in over 23 years, rising to 'Baa2' with a stable outlook. This represents a victory for Prime Minister Giorgia Meloni, who took office during a period when the country was close to the 'junk' category limit. The rating review reflects political stability and the effectiveness of economic and fiscal reforms, as well as investments under the National Recovery and Resilience Plan (PNRR).

In the past, Italy's rating was downgraded, reaching 'Baa3' in 2018, and the outlook was revised to negative in 2022. The Meloni government has implemented measures to stabilize the debt, which remains the second highest in the eurozone, and has reduced the budget deficit to below 3% of GDP. Additionally, other rating agencies, such as S&P and Fitch, have improved Italy's rating. Finance Minister Giancarlo Giorgetti emphasized that Moody's decision reflects the country's fiscal efforts, although challenges remain, considering the high debt and an estimated economic growth of only 0.5% for this year.