By Connor Hart
S&P Global Ratings upgraded its credit rating on Italy.
The agency said Friday that the U.S. administration's decision to suspend the announced 20% tariff on European Union goods for three months, and to impose a milder 10% tariff, "means the hit to Italy's economy will be manageable."
The country's net external creditor position has deepened over the past five years, it added, citing resilient exports and high domestic savings rates. Net general government debt remains elevated, but S&P expects debt-to-GDP to stabilize as cash deficits gradually narrow.
At the same time, the European Central Bank's credibility amid declining inflation across the euro area stands to benefit Italy's monetary flexibility and creditworthiness, the agency said.
S&P raised its unsolicited long-term foreign and local currency sovereign credit ratings on Italy to BBB+ from BBB and backed its short-term A-2 ratings.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
April 11, 2025 18:44 ET (22:44 GMT)
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