Research Update: Italy's Region of Campania Upgraded To 'BBB' From 'BBB-' On Improving Budgetary Position; Outlook Stable

We expect Italy's central government will continue to support regions, including Campania, as recently reflected in the increase in planned health care fund transfers for 2024-2026. This, coupled with Campania's continuous focus on spending controls will, in our view, enable the region to raise its service standards, notably in health care, and lead to improvements in its budgetary position. Campania will continue to post budget surpluses after capital accounts, resulting in a reduction in its debt levels. We therefore raised our long-term foreign and local currency issuer credit ratings on Campania to 'BBB' from 'BBB-'. The outlook is stable. On Nov. 10, 2023, S&P Global Ratings raised its long-term foreign and local currency issuer credit ratings on the Italian Region

...- We expect Italy's central government will continue to support regions, including Campania, as recently reflected in the increase in planned health care fund transfers for 2024-2026. - This, coupled with Campania's continuous focus on spending controls will, in our view, enable the region to raise its service standards, notably in health care, and lead to improvements in its budgetary position. - Campania will continue to post budget surpluses after capital accounts, resulting in a reduction in its debt levels. - We therefore raised our long-term foreign and local currency issuer credit ratings on Campania to '###' from '###-'. The outlook is stable....

Research Update