Fitch cuts Atlantia, units

Fitch Ratings said it downgraded Autostrade per l’Italia SpA’s long-term issuer default ratings to BB+ from BBB+ and Aeroporti di Roma’s IDR to BBB- from BBB+. The ratings remain on rating watch negative. Both ASPI and AdR are infrastructure assets managed and owned by Atlantia SpA.

The rating action follows the Italian government’s decision to unilaterally change the current toll-road concession rules by law which, in Fitch’s view, has a significant negative impact on the group’s credit profile at a time when the government is considering an early termination of the Autostrade concession agreement.

The probability of this significantly negative termination is on the rise as is the risk of a lengthy legal challenge by Autostrade, whose timing and outcome is unpredictable at this stage. The rating watch reflects significant uncertainty on future developments ranging from a renegotiation to early termination of the Autostrade concession.

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