Moody's changes CAV view to negative

Moody's Investors Service said it changed the outlook to negative from stable on Concessioni Autostradali Venete - CAV SpA and affirmed the Baa1 senior secured debt rating.

The spread of the coronavirus outbreak, a deteriorating global economic outlook, falling oil prices, and asset price declines are creating a severe and extensive credit shock across many sectors, regions and markets, the agency said.

“The combined credit effects of these developments are unprecedented. In particular, the toll road sector has been significantly affected by the shock given its exposure to travel restrictions and sensitivity to consumer demand,” said Moody’s in a press release.

The revision reflects the sharp decline in traffic at the motorway network operated by CAV following a series of restrictive measures and travel bans imposed by the Italian government since Feb. 23. The unprecedented public health measures aimed to contain the spread of the coronavirus will be in place for an unknown period, Moody’s said.

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