European monetary and fiscal support, a large, wealthy and diversified economy, and favourable debt profile support the rating. High public debt, low productivity, labour market rigidities, weak demographics, and political uncertainty are challenges.

European institutional support and a credible reform programme drive the Outlook change. High government debt and structural economic bottlenecks are ratings challenges.

Deteriorating public finances and weakness in Italy’s medium-run growth prospects drive the Outlook change. European institutional support, including from the ECB, the economy’s systemic importance and a strong external sector support the ratings.