Fitch affirms Linea Group at BBB-

Fitch Ratings said it affirmed Linea Group Holding SpA's (LGH) long-term issuer default rating and senior unsecured rating at BBB-.

The outlook is stable.

“The rating affirmation reflects the weak, although improving, operating performance of the group and the consequent breach of the rating guidelines, the strengthened integration with 51% shareholder A2A SpA and the expected deleveraging from 2018,” Fitch said in a news release.

“Fitch believes the acquisition by A2A in 2016 is credit positive and brings benefits to LGH in terms of cost savings, development opportunities and potentially lower cost of debt.

“The rating does not factor in an explicit uplift for parental support due to the overall moderate assessment of ties between the two companies, but we view it as an offsetting factor for LGH's weaker stand-alone credit metrics.”

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