Summary: CIR-Compagnie Industriali Riunite SpA
- ID: 1723939
- September 2010
- 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.
This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.
The ratings on Italy-based holding company CIR-Compagnie Industriali Riunite SpA (CIR) are primarily constrained by the high concentration of its investment portfolio on the 54%-owned power utility Sorgenia, which Standard & Poor's Ratings Services views as negative from a credit standpoint, given the utility's sizable debt leverage, heavy investments and associated execution risks, and recent weak performances. Also weighing on the ratings are challenges that Gruppo Editoriale L'Espresso SpA (BB/Stable/--) and Sogefi face in their respective media and automotive sectors, and our assessment that CIR's asset portfolio has limited liquidity because Sorgenia is not listed. Management's entrepreneurial philosophy and occasional appetite for strategic investments in unproven or not yet stabilized businesses is also a credit negative, although the generally low...
Companies mentioned in this report are: CIR-Compagnie Industriali Riunite SpA,Gruppo Editoriale L'Espresso SpA
SHOW LESS READ MORE >