Dbrs confirms BBB rating for Italy. “The decline in debt/GDP will be limited by the impact of construction loans from Superbonus.”

Dbrs Morningstar affirmed the BBB rating attributed to Italy, with a stable outlook, due to “risks that remain balanced.” The agency notes that “support resulting from the implementation of the Italian National Recovery and Resilience Plan in the coming years is likely to mitigate the economic slowdown primarily associated with monetary policy tightening.” The ratio of public debt to GDP decreased […]

an agency Debris Morningstar Confirm BBB rating attributed to Italy, with stable prospects, due to “ Risks Which remains balanced.” The agency notes that “the support resulting from the implementation of… National plan for recovery and resilience In the coming years, Italy is likely to ease the economic slowdown mainly linked to monetary policy tightening Monetary policy“. the Ratio of public debt to GDP It decreased by about 13 percentage points, from a peak of 154.9% of GDP in 2020 to 141.7% in 2022, and by another percentage Decreased to 140.2% By the end of this year, the past few months have been “much better than expected.”

However, Debras continues, “future improvement in the debt trajectory is likely to be limited due to the negative impact” of debt-related tax breaks. Super bonus. The agency stated that the Meloni government “plans to Modest financial easing Extension of tax cuts that are likely to last beyond 2024 and may not be offset by “other measures,” along with Weak GDP growth And with high interest costs.” In this context, “a medium-term fiscal strategy that keeps the public debt ratio on a downward path is crucial to maintaining investor confidence in the medium term.” In light of the gradual reduction in the amounts of Italian public debt it holds European Central Bank Debt issuance increased demand for Italian debt support Italian families “It should contain the increase in sovereign revenues.”

But Dbrs Morningstar does not rule out the possibility European Commission It was decided to open one Excessive disability procedures against Italy in 2024 even if the Italian government’s “record of prudent fiscal course and compliance with EU fiscal rules is reassuring” about the outlook for Italian public finances. And also because Italy “appears committed to significantly reducing the structural deficit and limiting the growth of net primary spending in the future.”