DBRS cuts Progetto Brebemi to junk

DBRS said it downgraded Societa di Progetto Brebemi SpA's issuer rating and the ratings on its €307 million senior secured loan, €15 million of senior secured amortizing floating-rate notes (class A1 notes), €934 million of senior secured amortizing fixed-rate notes (class A2 notes) and €558 million of senior secured zero-coupon notes (class A3 notes) to BB (high) from BBB (low). The recovery rating for all debt instruments is RR2.

DBRS also changed the trend to stable from negative.

“Based on DBRS Morningstar’s rating case, the ratings downgrade reflects a delay in traffic recovery returning to 2019 levels. DBRS Morningstar now expects light vehicles to return to pre-pandemic levels in H1 2024 compared with 2022 as per its previous rating case and total traffic to return to pre-pandemic levels in 2023, with a materially negative knock-on effect on traffic projections and projected metrics,” the agency said in a press release.

The stable trend reflects higher visibility and the expected recovery in the Italian economy as the pandemic eases, DBRS said.

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