FX.co ★ DBRS Upgrades Italy’s Credit Rating to A

DBRS Morningstar has elevated Italy's credit rating to 'A (low)' with a stable outlook, upgrading it from 'BBB (high)'. This decision reflects enhanced economic resilience and the anticipation that fiscal consolidation will contribute to stabilizing the public debt ratio. Despite these improvements, Italy's credit ratings are still hindered by substantial public debt levels, an increasing interest burden, and potentially sluggish GDP growth. According to the Treasury, Italy's public debt is expected to rise to 136.2% of GDP this year, up from 134.9% in 2024, and to further increase to 137.4% by 2026, with stabilization predicted the following year. Italy’s GDP experienced a 0.1% quarter-on-quarter contraction in the second quarter of 2025, prompting the government to adjust its growth forecasts for this year and the next year to 0.5% and 0.7%, respectively, largely due to the effects of U.S. trade tariffs. Meanwhile, Standard & Poor's maintains Italy's credit rating at BBB+ with a stable outlook, while Moody's last assigned a credit rating of Baa3 with a positive outlook.