The Dbrs rating agency confirmed Italy's BBB (High) rating with a stable trend.
This is what we read in the note from Dbrs.
"The stable trend reflects Dbrs Morningstar's view that the risks to the rating are balanced. The progress in diversifying the country's gas supply and the expectation that the new government will not significantly deviate from the orientation of the prudent fiscal policies offset the deterioration of the country's growth prospects ".
So far, the Italian economy, he notes, "has experienced a rapid post-pandemic recovery, but its dependence on gas imports makes it vulnerable to high energy prices and lower gas supplies in the coming quarters".
Dbrs Morningstar, it continues, "does not rule out a modest recession in 2023, but the long-term implications should be limited as any gas rationing, should it be necessary, should be moderate".
If successful, the NRRR, underlines the rating agency, "would boost what has been historically weak economic growth".
Public finances, he notes, "have improved more than expected and maintaining a prudent fiscal stance remains key to restoring fiscal space and reducing the debt-to-GDP ratio. This is expected to continue to decline to around 145.4% this year. , which would represent a cumulative drop of nearly ten percentage points in two years from the peak of 154.9% in 2020 ".