S&P government credit ratings in largest economies worldwide 2024

According to the latest credit ratings of S&P, the largest economies worldwide confirmed a high level of creditworthiness, with all countries being in the investment grade category - as opposed to the speculative grade. 

Australia, Canada, and Germany were the most creditworthy countries on the list. An AAA rating indicates a very low risk of default, as the country is considered extremely capable of meeting its financial commitments even in challenging economic conditions. This level of rating is often referred to as prime or superior and is associated with a very high likelihood of repayment, making it highly attractive for investors.

Italy, on the other hand, had the lowest rating of all countries in the list. A BBB rating from S&P signifies that Italy's sovereign debt is considered investment grade, albeit at the lower end of this category. This rating reflects an adequate capacity to meet financial commitments, though Italy may face more economic vulnerability than countries with higher ratings. Economic weaknesses, such as higher debt levels and structural challenges, contribute to Italy’s BBB rating, while its diversified economy and EU membership support stability.