Press Release|Sovereigns

KBRA Upgrades Republic of Italy's Long-Term Ratings to BBB+; Outlook Revised to Stable

16 Feb 2024   |   Dublin


KBRA Europe (KBRA) upgrades the long-term ratings of the Republic of Italy to BBB+. KBRA affirms the short-term ratings at K2. The Outlook on the long-term ratings was revised to Stable following the upgrade

This credit rating is an unsolicited credit rating
With Rated Entity or Related Third-Party ParticipationYes
With Access to Internal DocumentsNo
With Access to ManagementYes

The upgrade of the long-term ratings reflects Italy’s resilient economic growth, which has outperformed the euro area average, despite successive external shocks and economic headwinds. Italy has successfully renegotiated its Recovery and Resilience Facility (RRF) plan with the European Commission and continues to unlock European funding and to meet its respective targets and milestones. KBRA expects that Italy’s ability to ignite faster paced growth should be abetted by this RRF funding, which aims to restructure, green and digitalise the economy. Notably, Italy’s investment and productivity rates have risen in recent years, boding for improved macro prospects. KBRA also notes that credit fundamentals of Italian banks have improved. Fiscal consolidation has been demonstrated despite meeting headwinds, largely stemming from the war in Ukraine, which subsequently led to an energy and cost-of-living crisis. Italy’s large public debt, slow consolidation of public finances, and still-weak growth weigh down the credit rating with the high interest rate environment dampening progress.

To access rating and relevant documents, click here.

Click here to view the report.



Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at

There are certain issuers, entities or transactions rated by KBRA Europe or KBRA UK that may be or have relationships with Shareholders and/or Shareholder-Related Companies, as that term is defined in KBRA’s Shareholder and Shareholder Related Companies for KBRA Europe and KBRA UK Policy and Procedure. Relevant disclosure information may be found here.

About KBRA Europe

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider. Kroll Bond Rating Agency Europe is located at 6-8 College Green, Dublin 2, Ireland.

Doc ID: 1003256

805 Third Avenue
29th Floor
New York, NY 10022
+1 (212) 702-0707
Contact Us

© 2010-2024 Kroll Bond Rating Agency, LLC. All Rights Reserved. Kroll Bond Rating Agency, LLC is not affiliated with Kroll Inc., Kroll Associates Inc., KrollOnTrack Inc., or their affiliated businesses.