Meloni government's deficit reduction is commended, Fitch upgrades Italy's rating for the first time since 2021.

Italy has received an upgrade in credit rating from Fitch for the first time since 2021, with the rating agency acknowledging Prime Minister Meloni's government's efforts to reduce the deficit. The company announced in a statement on Friday that it has upgraded the credit rating of the eurozone's third largest economy by one notch to BBB+, three levels above junk status. The company also added that the current rating is stable. "This rating upgrade reflects increasing confidence in Italy's fiscal trajectory, thanks to the continued improvement in Italy's fiscal prudence and its firm commitment to achieving short-term and medium-term fiscal targets under the new EU fiscal framework," Fitch said in its report on Friday. "The stable political environment, ongoing reform momentum, and the alleviation of external imbalances further enhance Italy's credit profile."