(Finance) – S&P Global Ratings has improved the Autostrade per l’Italia (ASPI) rating to BBB- with positive outlook following the sale of the 88.06% stake in Atlantia in ASPI to a consortium led by Cassa Depositi e Prestiti. The transaction resolves the dispute over the ASPI concession that arose after the collapse of the Genoa bridge in August 2018 and eliminates the risk of early termination of the concessionthus improving the regulatory and operational environment of the company.
While S&P expects ASPI to generate a solid Funds From Operations (FFO) to debt ratio of 17% -19% over the 2022-2024 period, discretionary cash flow (DCF) will remain negative due to large investments. The rating agency “will monitor the capital structure and dividend policywhich have not yet been disclosed “, reads a note.
The change of control makes ASPI a government-related entity (GRE) according to the agency’s criteria, as the Italian government indirectly owns 45% of the asset through CDP. “Being a fundamental national strategic asset for the Italian economy, which is based on trade, we believe ASPI is highly likely to receive extraordinary government support if needed“is underlined.
S&P revised up the stand-alone credit profileand (SACP) of ASPI to “bb +” from “bb” and raised the issuer rating and the emission of two notches at “BBB-“. It also raised its short-term rating on ASPI to “A-3”. The positive outlook mirrors that of Italy, as S&P believes there is a high probability of extraordinary government support.