Italy credit rating affirmed at A (low) by Morningstar DBRS

Morningstar DBRS has affirmed Italy’s long-term credit rating at ‘A (low)’ with a stable outlook. The agency noted that despite complex external conditions, including higher inflation and restrictive financial environments, the Italian economy has demonstrated resilience.

The stable outlook reflects the assessment that credit risks remain balanced. The agency expects Italy to continue adhering to European Union fiscal rules, noting that the EU’s fiscal framework and market discipline act as constraints against significant deviations from budget discipline. While the government’s fiscal plan anticipates a temporary worsening of results in 2027-2028 due to increased spending on defense and energy security, this is not expected to fundamentally alter long-term debt dynamics.

Potential risks identified include rising interest burdens, adverse demographic trends, and political uncertainty regarding future elections. The agency emphasized that any subsequent administration must reaffirm a commitment to prudent fiscal policy to maintain this trajectory.