PPC bond rating firm Synch has upgraded bond ratings on the European Central Bank to investment grade from stable, citing a strengthening economy and a weak outlook for inflation.
The move means the bank’s outlook for the eurozone remains unchanged and the outlook for Italy remains unchanged, it said.
Synthetic bond yields are set to fall to around 2.5pc by the end of this year, with a further drop expected this year.
The outlook is largely unchanged from the previous ratings outlook.
PPC bond ratings are used to benchmark the performance of bond issuers across the eurozone, including the ratings of bond funds, bond issuances, and private investors.
While the bond markets continue to rally in Europe, a number of companies and institutions have been struggling in recent months.
Italy’s economy has shrunk to 2.7pc of gross domestic product from 3.1pc last year.
The country’s economy is expected to shrink another 1pc in the next three years, according to the latest forecasts from the OECD.
It’s not just Italy, however, that is struggling.
On Tuesday, Italy’s Finance Ministry said it expects the Italian economy to shrink by 0.7 percent in 2016, from 0.8pc last month.
In Greece, meanwhile, the country’s gross domestic growth is forecast to slip to 1.7% in the first quarter from 1.8% in 2015.
Meanwhile, the US economy has also been battered by an economy-wide recession, as its unemployment rate edged down to 8.7%.
According to the Office of Management and Budget, the economy shrank by 0,9 percent in the third quarter, from a year earlier, as employers cut back on hiring and discouraged hiring.
There is also a decline in consumer spending, the government said.