Research Update: Italian Energy Purchaser And Strategic Oil Reserves Manager Acquirente Unico 'BBB' Rating Affirmed; Outlook Negative

We believe that Acquirente Unico SpA plays a critical role for the Italian government given its dual mission as centralized purchaser of electricity--although this will gradually decrease--and manager of Italy's strategic oil reserves through its operational unit OCSIT (Organismo Centrale di Stoccaggio Italiano). We also believe that Acquirente Unico benefits from a strong legal status that ensures the financial balance of all its operating activities. In our view, there is an almost certain likelihood that Acquirente Unico would receive timely and sufficient extraordinary support from the Italian government in the event of financial distress. We are affirming our 'BBB' long-term issuer credit rating on Acquirente Unico, and equalizing it with our long-term sovereign rating on Italy. The negative outlook on

...- We believe that Acquirente Unico SpA plays a critical role for the Italian government given its dual mission as centralized purchaser of electricity--although this will gradually decrease--and manager of Italy's strategic oil reserves through its operational unit OCSIT (Organismo Centrale di Stoccaggio Italiano). - We also believe that Acquirente Unico benefits from a strong legal status that ensures the financial balance of all its operating activities. - In our view, there is an almost certain likelihood that Acquirente Unico would receive timely and sufficient extraordinary support from the Italian government in the event of financial distress. - We are affirming our '###' long-term issuer credit rating on Acquirente Unico, and equalizing it with our long-term sovereign rating on Italy. - The negative outlook on Acquirente Unico reflects that on Italy and our expectation that Acquirente Unico's critical role for Italy and integral link with Italy will not change....

Research Update