The ratings on European toll road network operator, Atlantia SpA, reflect our view that the group will retain its excellent business risk profile, thanks to the stability of its mature long-term concessions'. The company generates more than 80% of its EBITDA from the mature and profitable Italian toll road network operator, Autostrade per I'Italia SpA (ASPI; A-/Negative/A-2). In our view, ASPI is regulated under a supportive concession agreement, which expires in 2038. The agreement enables the operator to make incremental investments in its core assets, compensated by yearly tariff increases including a fixed percentage of inflation (70%) plus a specific fixed component for returns on investments. These strengths are partially offset, in our opinion, by substantial planned capital expenditures--€17.6 billion
