Global Header | Moody's
Close
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

Moody's Public Sector Europe downgrades 20 Italian sub-sovereigns and changes the outlook to stable

23 Oct 2018

London, 23 October 2018 -- Moody's Public Sector Europe (MPSE) has today downgraded the long term ratings of 18 Italian regional and local governments (RLGs) and two Government Related Issuers (GRIs) and changed the outlooks to stable. At the same time, Moody's has confirmed the Ba1 rating of the Autonomous Region of Sicily and changed the outlook to stable and has affirmed the Ba2 ratings with a stable outlook of the Region of Lazio. Moody's also confirmed the Prime-2 short term issuer rating of the Autonomous Region of Valle d'Aosta.

The rating actions conclude the review for downgrade that commenced on 29 May 2018.

The rating actions were prompted by the rating agency's downgrade of Italy's government bond rating from Baa2/RUR down to Baa3 with a stable outlook. For further information on the sovereign rating action, please refer to Moody's press release dated 19 October 2018 (https://www.moodys.com/research/Moodys-downgrades-Italys-ratings-to-Baa3-stable-outlook--PR_390302).

Please click on this link http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_201338 for the List of Affected Credit Ratings. This list is an integral part of this Press Release and identifies each affected issuer.

RATINGS RATIONALE

RATIONALE FOR DOWNGRADING 18 REGIONAL AND LOCAL GOVERNMENTS' LONG TERM RATINGS AND CHANGING TO STABLE OUTLOOKS

Rationale for downgrading the long term ratings

The decision to downgrade by one notch the long term ratings of 18 regional and local governments (RLGs) reflects their close operational and financial linkages with the central government. The negative implications for medium-term growth of the stalling of plans for structural economic and fiscal reforms pose risks for RLGs and outweigh recent successful budgetary consolidation efforts.

Italian RLGs are enduringly linked with the central government via close institutional, economic and financial links. These links have strengthened in the course of the last few years due to several changes in the institutional framework, leading to higher supervision and greater control mechanisms exerted by the central government.

Moody's notes that regions strongly rely on the Italian sovereign for the funding of the healthcare sector, their main responsibility which absorbs in most cases around 80% of their budgets. The dependence of Italian RLGs on sovereign transfers has been reinforced by stricter limits on their financial autonomy. As a result, a weakening in Italy's fiscal strength may lead to fiscal pressure for RLGs over the medium term.

Furthermore all RLGs are largely dependent on the sovereign for their borrowing needs for capital expenditures. As such their cost of funding is largely reliant on sovereign credit conditions. The Italian government is the sector's main creditor accounting for around 83% of regional and local governments' existing debt.

Rationale for changing to stable outlooks

The stable outlook on the Italian regional and local governments is based on recent consolidation efforts undertaken by Italian RLGs and Moody's expectation that they will continue going forward. The healthcare sector has improved in all Italian regions, and the healthcare budgets are all either at or close to equilibrium, giving the Italian regions some limited budgetary flexibility.

Rationale for confirming the Prime-2 short-term issuer rating of Valle d'Aosta

Moody's confirmed the Prime-2 short-term issuer rating of Valle d'Aosta reflecting the steady and high level of liquidity at 8.5x debt repayments and low net direct and indirect debt (NDID) at nearly 35% of operating revenues at YE2017.

RATIONALE FOR DOWNGRADING TWO GOVERNMENT RELATED ISSUERS AND CHANGING TO STABLE OUTLOOKS

The decision to downgrade MM S.p.A.'s ratings to Baa3 with a stable outlook from Baa2, RUR- and Cassa del Trentino S.p.A.'s ratings to Baa1 with a stable outlook from A3, RUR - mirrors the corresponding rating actions on their respective owners - City of Milan now at Baa3/Stable and Autonomous Province of Trento now at Baa1/Stable. From a credit-risk perspective, there is no meaningful distinction between these two entities and their respective owners because of the intrinsic operational ties between them.

RATIONALE FOR CONFIRMING THE RATING OF THE REGION OF SICILY WITH STABLE OUTLOOK

Moody's confirmed the Region of Sicily's rating at Ba1 with a stable outlook. The region's liquidity position significantly improved over the last three years while deleveraging continues with a moderate NDID ratio of 49% at YE2017. The confirmation reflects the on-going budgetary consolidation efforts, which may accommodate potential pressure driven by the deterioration of the sovereign's credit quality.

RATIONALE FOR AFFIRMING THE RATING OF THE REGION OF LAZIO WITH STABLE OUTLOOK

Moody's affirmed the Ba2 ratings with stable outlook of the Region of Lazio reflecting the region's significant progress towards budgetary consolidation, its enhanced liquidity position, healthcare sector equilibrium and slow debt decline. The affirmation in the context of weaker sovereign credit conditions reflects Moody's expectations that the region will continue to post positive gross operating balances and further improve its budgetary results despite a still high debt level.

WHAT COULD CHANGE THE RATING UP/DOWN

Upward pressure on the ratings of RLGs and GRIs could result from the strengthening of the sovereign credit profile. For issuers rated below the sovereign bond rating, evidence of a given entity's ability to display comparatively stronger credit fundamentals and an ability to withstand a challenging operating environment could also exert upward rating pressure.

A further weakening of the Italian sovereign credit profile could lead to downward adjustments in ratings of some RLGs and GRIs. Additionally, financial difficulties resulting in cash-flow pressures and consistently high or excessively growing debt levels could lead to downward rating actions independent of sovereign rating movements.

The sovereign action required the publication of these credit rating actions on a date that deviates from the previously scheduled release date in the sovereign release calendar, published on www.moodys.com.

The specific economic indicators, as required by EU regulation, are not available for these entities. The following national economic indicators are relevant to the sovereign rating, which was used as an input to this credit rating action.

Sovereign Issuer: Italy, Government of

GDP per capita (PPP basis, US$): 38,233 (2017 Actual) (also known as Per Capita Income)

Real GDP growth (% change): 1.6% (2017 Actual) (also known as GDP Growth)

Inflation Rate (CPI, % change Dec/Dec): 0.9% (2017 Actual)

Gen. Gov. Financial Balance/GDP: -2.4% (2017 Actual) (also known as Fiscal Balance)

Current Account Balance/GDP: 2.8% (2017 Actual) (also known as External Balance)

External debt/GDP: [not available]

Level of economic development: High level of economic resilience

Default history: No default events (on bonds or loans) have been recorded since 1983.

SUMMARY OF MINUTES FROM RATING COMMITTEE

On 18 October 2018, a rating committee was called to discuss the rating of the Abruzzo, Region of; Basilicata, Region of; Bolzano, Autonomous Province of; Campania, Region of; Lazio, Region of; Milan, City of; Piedmont, Region of; Roma Capitale, Metropolitan city of; Valle d'Aosta, Autonomous Region of; Civitavecchia, City of; Liguria, Region of; Lombardy, Region of; Molise, Region of; Puglia, Region of; Sardinia, Autonomous Region of; Sicily, Autonomous Region of; Trento, Autonomous Province of; Umbria, Region of; Veneto, Region of; Venice, City of. The main point raised during the discussion was: the systemic risk in which the issuers operate has materially increased.

The principal methodology used in rating Abruzzo, Region of, Basilicata, Region of, Bolzano, Autonomous Province of, Campania, Region of, Civitavecchia, City of, Lazio, Region of, Liguria, Region of, Lombardy, Region of, Milan, City of, Molise, Region of, Piedmont, Region of, Puglia, Region of, Roma Capitale, Metropolitan city of, Sardinia, Autonomous Region of, Sicily, Autonomous Region of, Trento, Autonomous Province of, Umbria, Region of, Valle d'Aosta, Autonomous Region of, Veneto, Region of, and Venice, City of was Regional and Local Governments published in January 2018. The principal methodology used in rating Cassa del Trentino S.p.A., and MM S.p.A. was Government-Related Issuers published in June 2018. Please see the Rating Methodologies page on www.moodys.com for a copy of these methodologies.

The weighting of all rating factors is described in the methodology used in this credit rating action, if applicable.

REGULATORY DISCLOSURES

Please click on this link http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_201338 for the List of Affected Credit Ratings. This list is an integral part of this Press Release and provides, for each of the credit ratings covered, Moody's disclosures on the following items:

• Releasing Office

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

The below contact information is provided for information purposes only. Please see the ratings tab of the issuer page at www.moodys.com, for each of the ratings covered, Moody's disclosures on the lead rating analyst and the Moody's legal entity that has issued the ratings.

The person who approved Cassa del Trentino S.p.A., and MM S.p.A. credit ratings is David Rubinoff, MD - Sub Sovereigns, Sub-Sovereign Group, Journalists Tel: 44 20 7772 5456, Client Service Tel: 44 20 7772 5454. The person who approved Abruzzo, Region of, Basilicata, Region of, Bolzano, Autonomous Province of, Campania, Region of, Civitavecchia, City of, Lazio, Region of, Liguria, Region of, Lombardy, Region of, Milan, City of, Molise, Region of, Piedmont, Region of, Puglia, Region of, Roma Capitale, Metropolitan city of , Sardinia, Autonomous Region of, Sicily, Autonomous Region of; Trento, Autonomous Province of, Umbria, Region of, Valle d'Aosta, Autonomous Region of, Veneto, Region of, and Venice, City of credit ratings is Mauro Crisafulli, Associate, Managing Director, Sub-Sovereign Group, Journalists Tel: 44 20 7772 5456, Client Service Tel: 44 20 7772 5454.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Elise Savoye
Asst Vice President - Analyst
Sub Sovereign Group
Moody's Investors Service EMEA Limited France Branch
96 Boulevard Haussmann
Paris 75008
France
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Mauro Crisafulli
Associate Managing Director
Sub Sovereign Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Nedejda Seu
Analyst
Sub Sovereign Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Releasing Office:
Moody's Investors Service EMEA Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

No Related Data.
© 2019 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors. It would be reckless and inappropriate for retail investors to use MOODY’S credit ratings or publications when making an investment decision. If in doubt you should contact your financial or other professional adviser.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for appraisal and rating services rendered by it fees ranging from JPY200,000 to approximately JPY350,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

Moody’s Public Sector Europe is the trading name of Moody’s Investors Service EMEA Limited, a company incorporated in England with registered number 8922701 that operates as part of the Moody’s Investors Service division of the Moody’s group of companies.
Global Footer | Moody's