Moody's Ratings upgraded Italy's government credit rating to 'Baa2' from 'Baa3', shifting the outlook from positive to stable. The agency attributed the upgrade to a consistent track record of political and policy stability, which enhances the effectiveness of economic and fiscal reforms under the country's National Recovery and Resilience Plan. The move is seen as a reinforcement of Prime Minister Giorgia Meloni's government's plans, following similar upgrades from Fitch and S&P earlier in the year. Moody's noted that these stability factors support prospects for continued policy actions that will foster growth and fiscal consolidation, expecting Italy’s high government debt to gradually decline from 2027. Italy's finance minister, Giancarlo Giorgetti, welcomed the decision as a confirmation of renewed confidence in the government and the country. While the outlook is stable, Moody's acknowledged that risks remain in the path toward lowering Italy's significant debt burden, though reforms could boost overall growth prospects.