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 affirms Atlantia's ratings with a negative outlook following conclusion of acceptance period for Abertis tender offer

16 May 2018

Ratings of ASPI and ADR also affirmed with a negative outlook

London, 16 May 2018 -- Moody's Investors Service (Moody's) has today affirmed the Baa2 senior unsecured rating and the (P)Baa2 rating of the euro medium-term note (EMTN) programme of Atlantia S.p.A. (Atlantia). Concurrently, Moody's affirmed the Baa1 issuer rating, the Baa1 senior unsecured ratings and the (P)Baa1 senior unsecured EMTN programme rating of Autostrade per l'Italia S.p.A. (ASPI). Moody's also affirmed the Baa1 senior unsecured and senior secured ratings and the (P)Baa1 senior unsecured EMTN programme rating of Aeroporti di Roma S.p.A. (ADR). The outlook on all the ratings remains negative.

A full list of affected ratings is provided towards the end of this press release.

RATINGS RATIONALE

The rating action follows the conclusion of the acceptance period related to the tender offer for the outstanding shares of the Spanish toll road operator Abertis Infraestructuras S.A. (Abertis, not rated). Following this tender period the Atlantia consortium controls 85.60% of Abertis' share capital, excluding the Abertis treasury shares. Following the results of the tender offer, the new shareholders are expected to delist Abertis after having offered remaining minorities the option to sell their shares at the same price as the tender offer price.

The tender offer is part of an agreement between Atlantia, the Spanish construction company ACS Group (not rated) and its German subsidiary Hochtief (not rated), in respect of a joint investment in Abertis. The agreement provides for the acquisition by Hochtief of all of the tendered shares of Abertis (at EUR18.36 per Abertis share) and the establishment of a new special purpose vehicle (SPV) which would subsequently acquire Hochtief's entire investment in Abertis resulting from the tender offer (at the price paid by Hochtief). Atlantia will own 50% plus one share of the SPV, thus enabling it to consolidate both the SPV and Abertis in its accounts, with the remaining share capital being held by ACS (30%) and Hochtief (20% less one share). As part of the agreement, Atlantia would also acquire a stake in Hochtief for a maximum consideration of EUR2.44 billion (up to 24.1% of the Hochtief's share capital under the scenario of 100% acceptances at Abertis and proportionally reducing for lower acceptance levels).

While the acquisition will result in a weakening of Atlantia's financial profile as a result of the material increase in consolidated debt leverage, Moody's expects that Atlantia will be able to generate a financial profile consistent with the current rating. Nevertheless, the negative rating outlook reflects the residual risk that the company's key credit metrics may not strengthen to levels considered commensurate with the current rating. Post-acquisition, Moody's would expect Atlantia to exhibit a ratio of Funds From Operations (FFO)/Debt of at least 12% to support the current ratings, which will require a modest improvement from the initial post-acquisition levels.

This ratio guidance has been slightly relaxed compared to that which applied to Atlantia prior to the Abertis acquisition, reflecting the balance of (i) the shorter average concession life of the combined group post-acquisition (approximately 21 years for Atlantia as of YE 2017, reducing to 16 years post-acquisition); (ii) the presence of minorities at Abertis in light of acceptance levels below 100% and the ownership structure of the SPV, in which Atlantia owns a stake of 50%+1 share, and (iii) the beneficial impact of increased international diversification and reduced dependence on any single market.

The acquisition represents a relatively sizeable transaction for Atlantia. The 85.60% ownership held by SPV, which could however further increase in the context of the delisting process for Abertis, means that Atlantia would be required to subscribe share capital in the SPV and Hochtief for a cumulative amount of around EUR5.1 billion, while acquisition debt at the SPV, which Atlantia will fully consolidate, would amount to approximately EUR6.3 billion post expected asset disposals. Atlantia's reported Net Debt/EBITDA ratio was 2.6x as of YE 2017, while the reported ratio for Abertis was 4.4x. The consolidation of Abertis, the additional leverage at the SPV, as well as the required capital contributions to Hochtief and the SPV will result in a relatively significant increase in the combined Net Debt/EBITDA for the Atlantia enlarged group, to an estimated reported Net Debt/EBITDA ratio of around 5.1x (pro-forma 2017 post-disposals for the combined group; not including the recent acquisition of a stake in Getlink by Atlantia). This ratio would increase to around 5.4x under the scenario of a 100% acceptance level post-delisting.

Notwithstanding the above, the acquisition is consistent with Atlantia's strategy of increasing its international diversification and reducing its dependence on its domestic Italian market. Prior to the acquisition, Atlantia generated more than 80% of its consolidated EBITDA from its Italian toll road and airport operations, with the balance being mainly represented by its Brazilian and Chilean toll road activities. Following the acquisition, the weight of domestic Italian operations would reduce to less than half of pro-forma consolidated EBITDA, and Atlantia would also establish a significant presence in Spain and France (each market expected to account for in excess of 15% of consolidated EBITDA post-transaction). The acquisition would also reinforce its presence in Brazil and Chile, where Abertis is also present. This enhanced international exposure would reduce Atlantia's dependence on any single market and in particular, Italy. Whilst Italian activities are expected to continue to generate the largest share of cash flows, this is relevant in the context of the current pressures on the Italian sovereign rating (Baa2, negative).

RATIONALE FOR NEGATIVE OUTLOOK

The negative outlook on Atlantia's ratings reflects the risk that, following the acquisition of Abertis, key credit metrics for the enlarged Atlantia group may not strengthen sufficiently to reach levels commensurate with the current rating.

The negative outlook associated with ASPI and ADR's ratings is in line with the negative outlook on Atlantia's ratings. This reflects the linkages between the credit quality of ASPI and ADR and that of the wider Atlantia group and the absence of specific creditor protection features that would insulate ASPI and ADR from the wider group.

WHAT COULD CHANGE THE RATING UP/DOWN

In light of the current negative outlook, there is limited potential for upward rating pressure on Atlantia, ASPI and ADR's ratings.

Downward rating pressure would materialise if the consolidated financial profile for the Atlantia group post-transaction does not sufficiently strengthen to levels considered commensurate with the current rating. Atlantia would need to exhibit and maintain an FFO/Debt ratio of at least 12% by 2019 to support the current ratings. Moody's notes that the company also exhibits some flexibility to potentially implement additional measures aimed at reducing the detrimental impact on key credit metrics post-transaction, which may include asset disposals, the management of dividend distributions, the introduction of new equity capital into subsidiaries of the group, and the realisation of operational synergies which may mitigate the negative rating pressure. Downward rating pressure would however also result from a substantial change in the business risk profile of the combined group as a result of significant involvement in higher risk and/or greenfield projects. Downward pressure on Atlantia's rating could also materialise as a consequence of (i) substantial negative pressure on the government of Italy's sovereign rating; or (ii) a material change in the terms and conditions of Atlantia's key concessions or political interference. Any downgrade of Atlantia's rating would be reflected in a corresponding adjustment of ASPI's and ADR's ratings, given the linkages with the wider Atlantia group.

PRINCIPAL METHODOLOGIES

The methodologies used in Atlantia S.p.A. ratings were Privately Managed Airports and Related Issuers published in September 2017, and Privately Managed Toll Roads published in October 2017. Please see the Rating Methodologies page on www.moodys.com for a copy of these methodologies.

The principal methodology used in Aeroporti di Roma S.p.A. ratings was Privately Managed Airports and Related Issuers published in September 2017. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

The principal methodology used in Autostrade per l'Italia S.p.A. ratings was Privately Managed Toll Roads published in October 2017. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

Atlantia S.p.A. is the holding company for a group active in the infrastructure sector. Its main subsidiaries include Autostrade per l'Italia S.p.A., Aeroporti di Roma S.p.A., and Azzurra Aeroporti S.r.l. (holding company for Aéroports de la Côte d'Azur, the latter rated Baa2 stable).The group's total EBITDA amounted to almost EUR3.7 billion in 2017. When completed, the acquisition of Abertis will enable the group to have operations in 15 countries with a combined EBITDA of more than EUR7 billion.

Autostrade per l'Italia S.p.A. is the country's largest operator of tolled motorways, which together with its subsidiaries, manages a network of 3,020 km of motorways under long-term concession agreements granted by the Italian government. The company generated EBITDA of almost EUR2.5 billion in 2017.

Aeroporti di Roma S.p.A. is the concessionaire for the Rome airport system, which reported total passenger volumes of 47 million in 2017. ADR reported EBITDA of approximately EUR550 million in 2017.

Abertis Infraestructuras S.A. is the major Spanish toll road operator and a leading international infrastructure group, with approximately 8,000 km of toll roads directly managed mainly located in in France, Spain, Italy, Brazil, Chile, Argentina and Puerto Rico. The company generated EBITDA of almost EUR3.5 billion in 2017.

LIST OF AFFECTED RATINGS

Affirmations:

..Issuer: Atlantia S.p.A.

....Senior Unsecured MTN Program, Affirmed (P)Baa2

....Backed Senior Unsecured Regular Bond/Debenture, Affirmed Baa1

....Senior Unsecured Regular Bond/Debenture, Affirmed Baa2

..Issuer: Autostrade per l'Italia S.p.A.

....LT Issuer Rating, Affirmed Baa1

....Senior Unsecured MTN Program, Affirmed (P)Baa1

....Senior Unsecured Regular Bond/Debenture, Affirmed Baa1

....Backed Senior Unsecured Regular Bond/Debenture, Affirmed Baa1

..Issuer: Aeroporti di Roma S.p.A.

....Senior Unsecured MTN Program, Affirmed (P)Baa1

....Senior Unsecured Regular Bond/Debenture, Affirmed Baa1

....Underlying Senior Secured Regular Bond/Debenture, Affirmed Baa1

Outlook Actions:

..Issuer: Atlantia S.p.A.

....Outlook, Remains Negative

..Issuer: Autostrade per l'Italia S.p.A.

....Outlook, Remains Negative

..Issuer: Aeroporti di Roma S.p.A.

....Outlook, Remains Negative

REGULATORY DISCLOSURES

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.

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.

Raffaella Altamura
Vice President - Senior Analyst
Infrastructure Finance Group
Moody's Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Andrew Blease
Associate Managing Director
Infrastructure Finance Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Releasing Office:
Moody's Investors Service 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.
© 2018 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.

CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

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.