DBRS Upgrades Italy’s Credit Rating to A

DBRS Morningstar upgraded Italy’s credit rating to ‘A (low)’, with a stable outlook, from ‘BBB (high)’ on Friday, supported by improvements that have resulted in a more resilient economy and expectations that fiscal consolidation will help stabilize the public debt ratio. However, the agency said Italy’s credit ratings remain constrained by a very high level of public debt, a large and rising interest burden, and potentially weak GDP growth. Italy’s public debt is projected by the Treasury to rise to 136.2% of GDP this year, up from 134.9% in 2024, and to climb further to 137.4% in 2026 before stabilizing the following year. Italy’s GDP contracted by 0.1% QoQ in Q2 of 2025, and the government this month trimmed its growth estimates for this year and next to 0.5% and 0.7%, respectively, due to the impact of US trade tariffs. Standard & Poor's credit rating for Italy stands at BBB+ with a stable outlook. Moody's credit rating for Italy was last set at Baa3 with a positive outlook.