(Reuters) -Ratings agency Fitch boosted Italy’s rating to ‘BBB+’ from ‘BBB’ on Friday, citing increased confidence in the country’s fiscal resilience and a stable political environment, in line with analysts’ expectations.
“The current policy framework and stable political backdrop is conducive to Italy meeting its targets, with the new multi-year planning process serving as an important anchor in sustaining fiscal prudence,” Fitch said.
Italy’s 2024 budget deficit of 3.4% of gross domestic product was well within the government’s 3.8% target, and Economy Minister Giancarlo Giorgetti has suggested it could fall below the European Union’s 3% ceiling this year, a year ahead of schedule.
“We have put Italy back on the right track,” Giorgetti said in a brief statement after the upgrade.
Fitch upwardly revised the country ceiling for Italy to ‘AA+’ from ‘AA’ on Friday and kept the country’s outlook steady at stable.
(Reporting by Yamini Kalia in Bengaluru and Gavin Jones in Rome; Editing by Krishna Chandra Eluri)
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