Research Update: Italian Utility AEM SpA 'BBB' Rating Still On Watch Pos On Approval Of ASM Brescia Merger
- ID: 1723059
- October 2007
- Region: Italy
- Standard & Poors
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.
On Oct. 26, 2007, Standard & Poor's Ratings Services said that its 'BBB' long-term corporate credit rating on Italian utility AEM SpA remains on CreditWatch with positive implications following the company's announcement that its shareholders have approved its merger with neighboring utility ASM Brescia SpA (A+/Watch Neg/A-1) and with the city of Milan's municipal waste business, AMSA SpA. The 'A-2' short-term corporate credit rating, which is not on CreditWatch, is unchanged. The long-term rating on AEM was placed on CreditWatch on June 5, 2007, following the announcement of the merger, with AEM absorbing ASM according to a share swap ratio of 1.6x (1.60 AEM ordinary shares for every 1 ASM ordinary share). The positive CreditWatch implications reflect our opinion that...
Companies mentioned in this report are: A2A SpA,ASM Brescia SpA
Action: CreditWatch Update