Research Update: Italy's Region of Campania Outlook Revised To Stable From Positive As Pressure From Pandemic Rises; Affirmed At 'BBB-'

Campania's health care system is under increasing pressure to manage the second wave of COVID-19 infections in the region. The central government's compensation for COVID-19-related costs should largely mitigate the impact of the pandemic on the region's accounts, in our view. That said, despite Campania's improved financial management in recent years, we believe the pandemic may test the region's administrative capacity and could eventually constrain its budget. We are therefore revising our outlook on Campania to stable from positive, and affirming our 'BBB-' long-term issuer credit rating on Campania. On Nov. 13, 2020, S&P Global Ratings revised the outlook on the Italian region of Campania to stable from positive, and affirmed its 'BBB-' long-term issuer credit rating. The stable outlook

...- Campania's health care system is under increasing pressure to manage the second wave of COVID-19 infections in the region. - The central government's compensation for COVID-19-related costs should largely mitigate the impact of the pandemic on the region's accounts, in our view. - That said, despite Campania's improved financial management in recent years, we believe the pandemic may test the region's administrative capacity and could eventually constrain its budget. - We are therefore revising our outlook on Campania to stable from positive, and affirming our '###-' long-term issuer credit rating on Campania....

Research Update