Credit ratings and financial soundness in public financial discourse: Evidence from the Sicilian regional government

IMPACTRegional governments increasingly use credit ratings in public communications, but these ratings are useful only when read alongside financial documents, oversight reports, and intergovernmental commitments that give them credibility. This article speaks to senior regional and local government officials, public finance managers, budget officers, auditors, oversight institutions, and central government officials involved in fiscal co-ordination. It helps them interpret rating upgrades, confirmations, and outlook revisions without treating them as stand-alone proof of financial soundness. The Sicilian case shows that ratings can support public claims of reliability, while their practical value depends on consistency with budgeting, accounting disclosure, control systems, and agreed recovery paths. For practitioners, the message is direct. Ratings can help communicate financial improvement, provided that communication remains anchored in transparent evidence, credible oversight, and coherent financial management practices. This matters for accountability, investor relations, institutional dialogue, and public trust, especially when financial decisions are politically visible and publicly scrutinized.