...- We believe the Italian government's framework for a settlement proposal with toll road operator ASPI, announced by the Council of Ministers on July 15, 2020, and the alternative proposals regarding the divestment from ASPI share capital set out by its parent Atlantia SpA on Aug. 4, 2020, is a positive step toward settlement of the dispute over the ASPI concession following the Genoa bridge collapse on Aug. 14, 2018. - In our view, the framework for an agreement reduces the risk that the ASPI concession will be terminated and could, if finalized along its current lines, result in positive rating actions on Atlantia and ASPI, since it would remove the liquidity and legal risks that a termination could have on the two companies. - Under the proposals, Atlantia would divest ASPI, which would no longer qualify as a core subsidiary, meaning potential rating consequences for each company could differ. This is because the complexity of the proposed divestiture and the number of stakeholders involved...
