(Finance) – Standard and Poor’s confirmed theIssuer Credit Rating of FS Italiane to “BBB” and modified theoutlookthat changes from positive to stable, reflecting the similar change that occurred on that of the Italian Republic. S&P also confirmed FS’s “Stand Alone Credit Profile” (SACP) equal to bbb +, which remains one notch higher than that of the Italian Republic.
Last week, the rating agency revised Italy’s outlook downwards due to risks that a slowdown or reversal of reforms – due to the elections and a new government – they could have for the Italian economy and public finances.
“In our opinion, FS cannot be rated higher than Italy’s sovereign rating because the company relies heavily on government grants to cover most of its network investments – reads the S&P note – It also receives current public revenues from the Italian regions and the central government to support passenger transport services. It also plays a key role in the government’s allocation of the recovery plan’s resources NextGenerationEU“.