WASHINGTON — The ratings agency S&P on Friday raised Italy's sovereign rating, citing the country's recovering economy as well as rising investment and job creation.

Former Italian Prime Minister Matteo Renzi, who stepped down in December after the failure of a constitutional reform referendum, welcomed the news.

"After years, at last, S&P raised Italy's rating," he said on Twitter. "Work pays off. Things work out over time. Onward now."

The ratings agency kicked Italy's credit rating up a notch, from BBB- to BBB -- still lower-medium grade, but with a stable outlook.

S&P said the Italian economy was expected to grow by 1.4 percent this year and before averaging 1.3 percent GDP into 2019. In addition to keeping its budget deficit at 2.1 percent of GDP or below, Italy has also begun bringing down its very high sovereign debt levels.

Gross debt now stands at 126 percent of GDP.

"In our view, the resolution of the crises related to Monte dei Paschi di Siena and two regional Veneto banks, and the quickening disposal of nonperforming loans in the banking system, support Italy's improved economic outlook," S&P said in a statement. — AFP