The central government's compensation for COVID-19-related costs has largely mitigated the impact of the pandemic on Campania's accounts and will continue to do so in our view. We believe Campania still faces some challenges to improve the quality of public services and streamline control over its finances, although it has increased transparency and cost discipline, and improved control over contingent risks. We have therefore affirmed our 'BBB-' long-term issuer credit rating on Campania and maintained the stable outlook. On May 14, 2021, S&P Global Ratings affirmed its 'BBB-' long-term issuer credit rating on the Italian region of Campania. The outlook is stable. The stable outlook reflects our expectations that the region will increase spending very gradually without enlarging its debt
