Fitch lowers Atlantia note program to BBB+

Fitch Ratings said it affirmed Autostrade per l'Italia SpA's (ASPI)'s long-term issuer default rating at A-.

The agency also downgraded the senior unsecured rating on Atlantia SpA's €3 billion euro medium-term note program to BBB+ from A- and removed it from Rating Watch Negative.

The outlooks are stable.

Fitch said the downgrade of Atlantia's €3 billion medium-term note program considers the structural subordination of Atlantia bondholders to ASPI creditors.

“ASPI debt does not contain credit material financial covenants but its concession agreement contains some ring-fencing provisions that substantially allow ASPI to upstream cash to shareholders only via ordinary and extraordinary dividends,” the agency explained.

“As a result, in absence of an upstream guarantee, we rate bonds issued under this EMTN program one-notch lower than that of an Atlantia-ASPI consolidated entity. This notching difference could be widened in the future if Atlantia's debt materially grows or its equity interests in ASPI and/or other core subsidiaries materially decrease.”

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