We observe that Italy-based toll road operator Atlantia's sizable capital expenditures could lead to continued negative discretionary cash flows and therefore to debt increases in the near to medium term. In our view, Atlantia's growth plans and refinancing risk linked to large bullet maturities in 2011 exerts further ratings pressure, although we consider this tempered by the company's adequate liquidity. We are revising our outlook on Atlantia and its subsidiary, Autostrade per I'Italia SpA (ASPI), to negative from stable, reflecting the possibility of a downgrade if Atlantia does not reduce debt and fails to take tangible steps toward the refinancing of its upcoming short-term maturities, notably the €2 billion bullet maturity coming due in June 2011 We have revised our
