This Chapter analyses the evolution of credit risk for Italian firms in recent years according to the Bank of Italy’s ICAS assessments, highlighting the key drivers behind its changes. It also explores how credit claims have become increasingly relevant as collateral. Italian firms’ credit quality, measured by PDs, has gradually improved since 2013; in the years 2020–2022, this improvement was mainly due to policy support measures following the pandemic, and to the subsequent economic recovery. The high costs of debt and the cyclical slowdown have resulted in a slight deterioration in PDs since 2023. Disparities persist by sector, size, and region. During the period observed, credit claims became more and more significant among the collateral asset classes used in Eurosystem refinancing operations, eventually becoming the predominant category. In Italy, the use of ICAS assessments has facilitated banks’ access to central bank liquidity, particularly during the pandemic.