Research Update: Atlantia And Subsidiaries 'BBB+' Rating On CreditWatch Negative Following Bridge Collapse In Genoa

On Aug. 14, 2018, an estimated 80-meter-long section of a 1,182-meter-long bridge in Genoa collapsed, causing casualties. The bridge is part of the A10 toll road operated by Italian toll road operator Autostrade per L'Italia (ASPI), which is 88% owned by Atlantia. The causes of the collapse are currently unknown and it is difficult to quantify the ramifications from an operational and financial perspective. Legal proceedings or even termination of the single concession agreement are possible, if there is a failure by the operator to fulfil its material obligations. Additional operational costs from emergency safety inspections or maintenance for assets of similar age or construction design could also emerge, putting pressure on ratios. We are placing our 'BBB+' ratings on

...+ On Aug. 14, 2018, an estimated 80-meter-long section of a 1,182-meter-long bridge in Genoa collapsed, causing casualties. The bridge is part of the A10 toll road operated by Italian toll road operator Autostrade per L'Italia (ASPI), which is 88% owned by Atlantia. + The causes of the collapse are currently unknown and it is difficult to quantify the ramifications from an operational and financial perspective. Legal proceedings or even termination of the single concession agreement are possible, if there is a failure by the operator to fulfil its material obligations. Additional operational costs from emergency safety inspections or maintenance for assets of similar age or construction design could also emerge, putting pressure on ratios. + We are placing our '###+' ratings on Atlantia and its subsidiaries Aeroporti di Roma and ASPI on CreditWatch negative. + The CreditWatch reflects the risk that the causes of the Genoa bridge collapse could bring potential litigation actions to Atlantia,...

Research Update