S&P Global Ratings revised its outlook on Italian transportation group Atlantia SpA and CIMIC Group Ltd. to stable from negative following the takeover of toll road company Abertis Infraestructuras SA.
In March, Atlantia reached an agreement with Spanish builder ACS SA, Cimic's parent company, on a deal to jointly acquire control of Abertis.
The rating agency said it considers Abertis "highly strategic" to Atlantia as it fits with the company's toll-road assets in France, Spain, Italy and Latin America.
"In our view, the transaction will strengthen Atlantia's competitive position given the larger footprint: Regional diversification will be enhanced with the additions of French and Spanish assets to its European operations," S&P said.
"It will also strengthen the group's position in Latin America, where assets from the two companies are complementary and we think synergies of about €60 million are achievable," it added.
The outlook revision on Cimic reflects the same ratings action on ACS, as the Australian engineering and construction firm remains a core subsidiary of the parent group, according to S&P.
Atlantia's long-term and short-term issuer credit ratings were affirmed at BBB+ and A-2, respectively.
Meanwhile, Cimic's long-term and short-term issuer credit ratings were affirmed at BBB and A-2, respectively.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here and here.