Italy Secures First Moody’s Upgrade in Over Two Decades

Italy has achieved a significant milestone with its first credit rating upgrade from Moody’s in more than 23 years. The MOVE underscores Prime Minister Giorgia Meloni’s success in stabilizing the country’s fiscal trajectory. Moody’s raised Italy’s rating by one notch to Baa2, lifting it from the brink of junk status and affirming a stable outlook.

The upgrade reflects sustained political and policy coherence under Meloni’s leadership, enabling progress on economic reforms and strategic investments tied to the National Recovery and Resilience Plan. Rome’s efforts to repair public finances during an era of unusual political continuity finally persuaded Moody’s—the last major agency to act—to revise its assessment.

This marks a reversal from 2018, when Moody’s downgraded Italy to Baa3 under former Prime Minister Giuseppe Conte amid lingering fallout from the eurozone debt crisis. The latest decision signals growing confidence in Italy’s financial resilience.