Fitch promotes Italian accounts: effect on the government from elections for the Colle

Fitch promotes Italy. The agency raised the rating to “BB” from “BBB-” with a stable outlook. Fitch’s decision, which also raised the growth estimates for the Italian economy, “crowns a series of positive assessments issued by five other rating agencies, which in recent weeks have improved their outlook on the country”, comments the Treasury. On October 22, S&P confirmed Italy’s «BBB» rating by raising its outlook to positive, and after a week Dbrs had maintained its rating at BBB (high). At the same time, it confirmed the short-term issuance rating at R-1 (low), changing the trend on all ratings from negative to stable. Moody’s, on the other hand, had not updated its opinion on Italian debt at the beginning of November, which remains firm to the decision of 7 May when it left it unchanged at Baa3 with a stable outlook. Hence, the quirinal knot. According to Fitch, “Since Prime Minister Draghi is a potential candidate, the presidential elections could have a direct effect on the future of the government of national unity.” Fitch states this in a note. «The government – explains the rating agency – has an ambitious agenda of structural reforms, linked to the Recovery and resilience plan. Since the parliamentary elections are scheduled for March 2023 and the current government of national unity is supported by ideologically different parties, the implementation of the reform measures could slow down in 2022 and will be more uncertain after the parliamentary elections ”.