Atlantia SpA Ratings Placed On CreditWatch Negative On Increased Risks Associated With ASPI Concession

An increase in operational and regulatory risks means that Italian toll road and airport operator Atlantia SpA faces a heightened likelihood of weaker financial metrics. The contractual protections afforded to the concession operated by Atlantia's subsidiary Autostrade per l'Italia (ASPI) could weaken if the Italian parliament revokes a law governing the concession's legal framework. The recent collapse of a second bridge near Genoa (although the road was not operated by ASPI) and the stalling of Atlantia's potential involvement in the rescue of Alitalia have increased the negative political sentiment towards Atlantia. In an extreme scenario, if the ASPI concession is revoked with no termination payment, in our view this could trigger a liquidity event notably for ASPI, which could be

...December 10, 2019 - An increase in operational and regulatory risks means that Italian toll road and airport operator Atlantia SpA faces a heightened likelihood of weaker financial metrics. The contractual protections afforded to the concession operated by Atlantia's subsidiary Autostrade per l'Italia (ASPI) could weaken if the Italian parliament revokes a law governing the concession's legal framework. - The recent collapse of a second bridge near Genoa (although the road was not operated by ASPI) and the stalling of Atlantia's potential involvement in the rescue of Alitalia have increased the negative political sentiment towards Atlantia. In an extreme scenario, if the ASPI concession is revoked with no termination payment, in our view this could trigger a liquidity event notably for ASPI, which could be extended to Atlantia. - We are therefore placing our '###-/A-3' issuer and '##+' issue credit ratings on Atlantia on CreditWatch negative and our '###-/A-3' issuer and issue credit ratings...

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