Research Update: Atlantia, ASPI, And Aeroporti di Roma Upgraded By One Notch On Approved Sale of ASPI; Outlook Positive

In our view, Atlantia's approval of ASPI's disposal in favor of the consortium led by Cassa Depositi e Prestiti (CDP) softens the risk that the Italian government will terminate Autostrade per I'Italia's (ASPI's) concession and bondholders will ask for early repayment of the debt. We believe that the close relationship between CDP and the Italian government will lead to a settlement agreement being signed, which is one of several conditions for the sale. The timing of the settlement agreement is still uncertain and ASPI's and Atlantia's exposure to legacy risk for the Genoa bridge collapse will remain for a time, even after an agreement is signed. We expect to delink the ratings on Atlantia and ASPI once the financing ties

...- In our view, Atlantia's approval of ASPI's disposal in favor of the consortium led by Cassa Depositi e Prestiti (CDP) softens the risk that the Italian government will terminate Autostrade per I'Italia's (ASPI's) concession and bondholders will ask for early repayment of the debt. - We believe that the close relationship between CDP and the Italian government will lead to a settlement agreement being signed, which is one of several conditions for the sale. - The timing of the settlement agreement is still uncertain and ASPI's and Atlantia's exposure to legacy risk for the Genoa bridge collapse will remain for a time, even after an agreement is signed. - We expect to delink the ratings on Atlantia and ASPI once the financing ties between the two companies are severed after creditors consent. - We have therefore raised our long-term ratings on Atlantia and ASPI by one notch to '##' from '##-'and affirmed the 'B' short-term ratings. - We raised the issue ratings on Atlantia's and ASPI's...

Research Update