Fitch affirms Azienda Trasporti, bond

Fitch Ratings said it affirmed Azienda Trasporti Milanesi SpA’s long-term issuer default rating at BBB and short-term issuer default rating at F2.

The outlook is stable.

The agency also affirmed the BBB local currency senior unsecured rating of its €70 million bond.

Fitch said the rating reflects Azienda Trasporti’s growing passenger volume and fare revenue, which offsets stagnant transfers from the central and regional governments amid low net debt.

The agency expects net debt to remain within three years of EBITDA over the medium-term.

Azienda Trasporti’s fairly flexible revenue, predictable costs and strong financial profile lead to an A standalone credit profile assessment under Fitch's revenue supported criteria, but constraints posed by Italy's and City of Milan's issuer default ratings of BBB due to their credit linkage with Azienda Trasporti and by the public sector representing the largest single contributor to Azienda Trasporti’s income, result in the issuer default rating being lowered to BBB for Azienda Trasporti, Fitch explained.

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