Dbrs confirms Italia's rating at 'A' with stable trend

The Dbrs agency Morningstar confirms the rating of Italia A (low) with stable trend. It said in a note. "The fallout from the war in the Middle East risks weighing on domestic demand and curbing growth in the short term given Italia's dependence on energy imports," the note highlights.

Italia's 'moderate but resilient growth' faces 'headwinds from high energy prices and increased uncertainty', Dbrs says, stressing that fiscal consolidation continues but 'the conflict in the Middle East poses risks for 2026'.

"Political stability is conducive to the design" of measures, but "reforms are needed to overcome long-standing challenges," Dbrs explains, noting that although the government is committed to maintaining prudent fiscal policies, "addressing the root causes of persistently weak productivity growth, adverse demographic trends, and persistent infrastructure deficiencies will require deeper structural reforms and sustained investment." Dbrs goes on to point out that the banking system remains solid even though it will face a more challenging operating environment in the short term.

Dbrs confirms the European Union's AAA rating with stable trend. This is stated in a note, which points out that geopolitical tensions and protectionism have weakened the European economic outlook.