Moody’s might lower Azzurra Aeroporti loan

Moody's Investors Service placed on review for downgrade the Baa3 senior secured bank loan rating of Azzurra Aeroporti SpA and the Baa2 issuer rating of Aéroports de la Côte d'Azur.

“The ratings review follows publication of the decision by the Council of State, which dismissed ACA's request to cancel the tariff decision by the Independent Supervisory Authority (ISA) from April 2019,” the agency said in a news release.

“In light of the above decision and given that ACA's tariff proposal to the Transport Regulatory Authority (TRA)–a regulatory authority for the aviation industry, which replaced ISA effective Oct. 1–was rejected in November, there is significant uncertainty around any changes to ACA's tariffs this year.”

Moody's said it now expects ACA's cash flow to be significantly lower than previously anticipated, which would lead to a breach of financial covenants included in the terms of the senior secured bank loan of Azzurra Aeroporti absent support from shareholders or other corrective measures.

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