Moody's Says It May Cut Atlantia's Rating After Genoa Disaster
(Bloomberg) -- Moody’s Investors Service said it may cut the credit score of Italian infrastructure group Atlantia SpA and its Autostrade per l’Italia toll road unit in the wake of last week’s motorway bridge collapse.
Both companies’ ratings are under review for downgrade, Moody’s said in a statement on Wednesday, citing the potential financial burden if the Italian government carries out threats to revoke Autostrade’s contract to operate the network. Atlantia’s finances are already stretched after building a stake in Abertis Infraestructuras, the ratings firm said.
Autostrade’s current Baa1 credit score is three steps above a junk rating while its parent Atlantia is graded one level lower at Baa2.
The company is the largest toll-road operator in Italy, controlling about half the country’s network. The Italian government is mulling a public takeover of Autostrade’s concession and has given the firm 15-days to detail how it had maintained the bridge, according to Moody’s.
Atlantia’s 1 billion euros ($1.16 billion) of bonds due in July 2027 are quoted at 91 cents on the euro, the highest level since Aug. 17, according to data compiled by Bloomberg. The 700 million euros of notes due September 2029 issued by Autostrade are at 88 cents, the data show.
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