Research Update: Atlantia SpA Ratings Lowered To 'BBB-' On Heightened Legal And Regulatory Risks; Outlook Negative

In our view, Italy-based toll road and airport operator Atlantia SpA is now more exposed to negative legal or regulatory actions, including renegotiations of concessions in the toll-road sector that the new Italian government has put forward in its agenda. The increased exposure follows allegations that some employees at Atlantia's subsidiaries may have misreported and omitted information in safety reports to the grantor of the toll-road concessions. These allegations are subject to an ongoing criminal investigation. In addition, Atlantia's CEO resigned on Sept. 17, 2019, at a time when Atlantia is focusing on the integration of recently acquired Spanish toll-road operator Abertis and is assessing a potential involvement in the financial rescue of Italian airline Alitalia. We still do not

...- In our view, Italy-based toll road and airport operator Atlantia SpA is now more exposed to negative legal or regulatory actions, including renegotiations of concessions in the toll-road sector that the new Italian government has put forward in its agenda. - The increased exposure follows allegations that some employees at Atlantia's subsidiaries may have misreported and omitted information in safety reports to the grantor of the toll-road concessions. These allegations are subject to an ongoing criminal investigation. - In addition, Atlantia's CEO resigned on Sept. 17, 2019, at a time when Atlantia is focusing on the integration of recently acquired Spanish toll-road operator Abertis and is assessing a potential involvement in the financial rescue of Italian airline Alitalia. - We still do not assume a revocation of the Italian toll road concession operated by Atlantia's subsidiary Autostrade per l'Italia (ASPI) because of the adverse economic and financial impact that such an action...

Research Update