Fitch Ratings hit Italy's Atlantia SpA and its subsidiary Autostrade per l'Italia SpA with a rating downgrade following the completion of the parent's deal for Spanish toll road operator Abertis Infraestructuras SA on Oct. 29.
The rating agency also lowered Abertis' long-term issuer default rating to BBB from BBB+ with a stable outlook. The senior unsecured rating of Atlantia's €10 billion medium-term note program was lowered to BBB from BBB+, and Autostrade's long-term issuer default rating was downgraded to BBB+ from A- with a negative outlook.
Fitch said the downgrade reflects the companies' material re-leveraging as a result of the acquisition.
The debt watcher also cited Atlantia's solid liquidity position and the financial flexibility embedded in its balance sheet, while Abertis' rating reflects its geographically diversified portfolio of mature assets and the large, albeit diminishing, financial flexibility of its balance sheet.
Meanwhile, Fitch affirmed the issuer default rating of airport operator Aeroporti di Roma SpA at BBB+ and revised the outlook to negative from stable.