S&P cuts Atlantia, on watch

S&P said it downgraded its ratings on Atlantia SpA and its subsidiaries after the Italian government introduced changes to toll road operators’ regulatory framework. The changes increase the risk of contracts being terminated.

The agency cut its ratings on Atlantia and Autostrade per l’Italia SpA to BB-. S&P cut its rating on Albertis and its subsidiaries HIT and Sanof to BBB- from BBB and placed them on CreditWatch with negative implications. In addition, S&P lowered Aeroporti di Roma to BB+ from BBB- and placed it on CreditWatch negative.

Autostrade’s debt is about €9.8 billion and Atlantia has further debt, which could be accelerated in case of a termination event. Autostrade’s debt includes €7.7 billion of bonds of which €3.9 billion are guaranteed by Atlantia. By their terms, the bonds can be accelerated if the concession is terminated. Autostrade also has €2.1 billion of credit facilities of which €1.7 billion can be accelerated under the terms of the facilities if the company’s issuer credit ratings fall below BBB-.

“If the facilities are accelerated, we will assess Atlantia’s ability to face a repayment in a situation of potential liquidity stress,” said S&P in a press release.

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