Italy expects credit rating upgrade from Moody's

According to Bloomberg, Italy awaits Moody's pivotal credit rating decision. The current Baa3 rating, just one notch above junk status, has remained unchanged since 2022. During this period, Giorgia Meloni's government has made significant strides in restoring fiscal stability.

Progress has been made in reducing the budget deficit to under 3% of GDP. As Bloomberg notes, this achievement stems from the government's consistent policies. Other rating agencies have already acknowledged Italy's improvements. S&P Global Ratings upgraded the country's creditworthiness last month.

Growing investor confidence is supported by hard data. The yield spread between Italian and German 10-year bonds has narrowed to 100 basis points, significantly below levels seen two years ago. However, the high public debt exceeding 130% of GDP remains a key challenge. According to European Commission forecasts, the debt burden will continue rising, requiring further government action.