WASHINGTON, Sept 20, 2025 (BSS/AFP) - Fitch Ratings raised Italy's credit rating Friday, in a validation of the hard-right government's fiscal austerity plan -- a move that came shortly after it downgraded the rating for France.

Fitch, a key global institution gauging the financial solidity of sovereign borrowers, raised the rating of the eurozone's third largest economy to "BBB+" from "BBB" with a stable outlook.

"The upgrade reflects increased confidence in Italy's fiscal trajectory," Fitch said.

This is "underpinned by a growing record of fiscal prudence" and commitment to meeting targets under the new EU fiscal framework, it added.

Fitch also referenced factors including "a stable political environment" and "ongoing reform momentum" in its assessment.

Fellow eurozone countries Spain and Portugal have separately seen recent upgrades by ratings agencies as well.

The government of Prime Minister Giorgia Meloni has pursued a policy of fiscal austerity and deficit cutting over the past two years.

The debt-laden country posted GDP growth of 0.7 percent in 2024 -- although less than government expectations -- and also in 2023.

Italy's public deficit has been cut more than a half, falling to 3.4 percent of GDP last year from 7.2 percent in 2023.