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Meloni Wins Hope of Moody’s Italy Upgrade From Brink of Junk

  • Moody's Ratings shifted Italy's outlook toward a possible upgrade on May 23, 2025, after Premier Giorgia Meloni’s fiscal efforts improved market sentiment.
  • This event follows Moody's negative outlook in August 2022, which shadowed Meloni’s election and reflected Italy’s high debt and slow growth challenges.
  • Support from S&P Global and positive signals from Fitch and DBRS, along with Italy's reduced bond yield spreads, indicate growing investor confidence despite persistent fiscal risks.
  • Moody's cited a more positive fiscal forecast driven by stronger-than-anticipated budget results this year and a steady political climate, Finance Minister Giancarlo Giorgetti stated.
  • The potential upgrade underscores the government's challenge to maintain a deficit below 3% amid economic and geopolitical pressures, leaving Italy’s elevated debt a lasting constraint.
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ANSA broke the news in Italy on Friday, May 23, 2025.
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