Fitch: Azienda Trasporti Milanesi, bond BBB

Fitch Ratings said it assigned Azienda Trasporti Milanesi SpA long-term issuer default ratings of BBB and a short-term issuer default rating of F2.

The outlook is stable.

The agency also assigned the upcoming up to €70 million bond an expected BBB(EXP) long-term local currency rating.

Fitch said the rating reflects Azienda Trasporti Milanesi’s leading position in delivering public transport in Milan (BBB/stable), and eventually in making transport assets available for tendered services in 2018 amid growing debt to fund the upgrading of trains, trams, buses and transport systems.

The agency expects the company to maintain good cash flow generation, underpinned by upside potential for fare revenue and flexibility of spending enabling self-funding of 50% of the €1 billion investment plan in 2017-2021.

The ratings are constrained by the concentration to BBB rated public sector revenue, with the risk of rigid transfers over the years to come, Fitch added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.