Integrated rail operator, sole concessionaire, and manager of the Italian railway infrastructure network and incumbent operator of passenger and freight transportation services in Italy. Dominant market position in the regional and freight transport segments but increasing competition in the high-speed national service. Stable contractual framework based on multi-annual programs, supported by the relatively predictable amounts of operating subsidies and investment grants. High debt levels and negative reported discretionary cash flows through the forecast period resulting from large capital expenditure (capex) requirements. The relatively sound credit metrics should gradually decline due to debt-funded capex combined with the fact that all the debt paid with state transfers are due to expire in 2021. Our view of the extremely high likelihood that the
