Moody's' credit rating assessment for the United Kingdom and Italy.

Moody's Critical Credit Rating Statements

The international credit rating agency Moody's has announced significant credit rating assessments for the United Kingdom and Italy. The long-term credit rating for the UK in both local and foreign currency has been confirmed as "Aa3" and the outlook has been determined as "stable."

UK's Economic Strength and Credit Rating

Moody's highlighted the strong institutional framework and diversified nature of the UK economy, emphasizing that the confirmation of the country's credit rating reflects these factors. Additionally, the government's commitment to reducing the large budget deficit and stabilizing the public debt ratio in the coming years was also among the supporting elements for the rating decision.

Balance of the Rating Outlook

The statement indicated that the "stable" outlook suggests a generally balanced assessment of the risks that are fundamental determinants of the economy and fiscal efforts.

Increase in Italy's Credit Rating

Meanwhile, Moody's has raised Italy's long-term credit rating from "Baa3" to "Baa2." However, it changed the outlook from "positive" to "stable."

Economic Reforms and Investments

In Moody's statement, it was expressed that the reason for the rating upgrade reflects the positive effects of implemented economic and fiscal reforms as well as political stability. Italy is expected to gradually reduce its high public debt burden starting from 2027.