Bulletin: State Support Somewhat Protects Ferrovie dello Stato Italiane Against Potential Effect Of Alitalia Acquisition

LONDON (S&P Global Ratings) Nov. 5, 2018--S&P Global Ratings said today that Ferrovie dello Stato Italiane SpA's (FSI) offer to buy two divisions of airline Alitalia-- Alitalia - Societa Aerea Italiana and Alitalia Cityliner--does not immediately affect our ratings on FSI (BBB/Negative/--). FSI relies on public subsidies and the Italian government exercises very tight control over the group by ultimately determining FSI's strategy. The rating therefore mirrors our sovereign rating on Italy (see "Terna, SNAM, And Ferrovie dello Stato Italiane Outlooks Revised To Negative After Similar Action On Italy," published on Oct. 29, 2018). The terms and conditions of the offer remain undisclosed and we understand that FSI is not the sole bidder. It is therefore premature to assess what

...LONDON (S&P Global Ratings) Nov. 5, 2018--S&P Global Ratings said today that Ferrovie dello Stato Italiane SpA's (FSI) offer to buy two divisions of airline Alitalia-- Alitalia - Societa Aerea Italiana and Alitalia Cityliner--does not immediately affect our ratings on FSI (###/Negative/--). FSI relies on public subsidies and the Italian government exercises very tight control over the group by ultimately determining FSI's strategy. The rating therefore mirrors our sovereign rating on Italy (see "Terna, SNAM, And Ferrovie dello Stato Italiane Outlooks Revised To Negative After Similar Action On Italy," published on Oct. 29, 2018). The terms and conditions of the offer remain undisclosed and we understand that FSI is not the sole bidder. It is therefore premature to assess what impact such transaction may have on FSI's stand-alone credit profile (SACP). That said, if FSI were to become full owner of the two divisions, or acquire a majority stake in Alitalia, we see significant operation and...

Bulletin