Press Release|Sovereigns
View PDF

KBRA Affirms BBB+/K2 Ratings for the Republic of Italy; Positive Outlook

23 Oct 2026   |   Dublin

Contacts

KBRA Europe (KBRA) affirms the Republic of Italy’s long-term issuer ratings of BBB+. KBRA also affirms the short-term issuer ratings of K2. The Outlook on the long-term ratings is Positive.

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

KBRA’s affirmation of the Republic of Italy’s ratings reflects its large, advanced and diversified economy, supported by strong institutions and benefitting from European Union and euro area membership. The Positive Outlook reflects continued improvement in the underlying fiscal position, including the return to primary surpluses and a narrowing budget deficit, which should support a gradual decline in public debt as the impact of Superbonus fades. Growth remains modest, but record employment, elevated public investment and continued National Recovery and Resilience Plan implementation have strengthened economic resilience and institutional capacity. Improved tax compliance, a more diversified sovereign investor base, a favourable external position and stronger banking sector fundamentals provide additional buffers. High public debt, weak productivity, demographic pressures and exposure to external energy and trade shocks remain key constraints, but sustained fiscal discipline and continued reform implementation support Italy’s improving credit profile.

To access ratings and relevant documents, click here.

Click here to view the report.

Methodology

Disclosures

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 www.kbra.com.

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), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Kroll Bond Rating Agency Europe Limited is located at 2nd Floor, One George’s Quay Plaza, George’s Quay, Dublin 2, D02 E440, Ireland.

Doc ID: 1017645