KBRA Assigns BBB/K2 Ratings for the Republic of Italy; Positive Outlook

DUBLIN--(BUSINESS WIRE)--Kroll Bond Rating Agency Europe (KBRA) assigns long-term issuer ratings of BBB to the Republic of Italy. KBRA also assigns short-term ratings of K2 to the sovereign. The Outlook on the long-term rating is Positive.

This credit rating is an unsolicited credit rating.
With Rated Entity or Related Third-Party Participation	Yes
With Access to Internal Documents	No
With Access to Management	Yes

KRBA assigns a Positive Outlook to Italy’s long-term ratings. The Positive Outlook reflects Italy’s potential for growth in the post-pandemic environment and its ability to outperform expectations with regard to its economic recovery. A pro-European government intends to modernize the Italian economy through the European Union (EU) Recovery and Resilience Facility, while reforms in certain sectors are already underway. Significant European Central Bank (ECB) presence in the Italian bond market eases pressure on government finances. The sovereign appears, at this juncture and relative to its recent past, to have the potential to outperform expectations.

Click here to view the report. To access ratings and relevant documents, click here.

Ratings are based on KBRA’s Sovereigns Rating Methodology, published 11 May 2017 and utilize the ESG Global Methodology published 16 June 2021.

Related Publications: (available at www.kbra.com).

• International Tax Reform and Sovereign Credit Risk
• ECB Guides Member States Through Debt Cliffs
• Podcast: Old Themes Transition to New Themes in Sovereign Credit Risk in Europe
• Coronavirus (COVID-19): EU Ratings Resiliency in Face of the Pandemic
• Coronavirus (COVID-19): KBRA’s Sovereign Ratings Through the Looking Glass

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA Europe

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority pursuant to the Temporary Registration Regime. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider. Kroll Bond Rating Agency Europe is located at 6-8 College Green, Dublin 2, Ireland.