We equalize the ratings on Autostrade per I'Italia Spa (ASPI) with those on Atlantia SpA (Atlantia) to reflect ASPI's strategic importance for Atlantia as its largest asset and contributor to EBITDA (about 80% as of December 2012). Strong market position as the largest toll road operator in Italy. Stable and predictable operations regulated under clear long-term agreements. Exposure to traffic volume risk. High debt burden and relatively rigid dividend policy that limits the pace of deleveraging. Very large committed capital expenditure (capex) program, bringing about negative free cash flow generation. However, according to the company, it has some flexibility to postpone capex due to the current weak traffic environment in Italy. In our view the capex plan and Atlantia's acquisitive
