Summary: A2A SpA
- ID: 1724074
- February 2011
- 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 multiutility A2A reflect Standard & Poor's Ratings Services' view of the group's current deleveraging program and its growth strategy, which seems less aggressive than we previously assumed. In our view, this could support a gradual strengthening of A2A's credit profile, which is currently at a weak level for the ratings. We understand from discussions with management that A2A's net financial debt is forecast to decline by up to -600 million by December 2010 (a reduction of -360 million had been achieved by Sept. 30, 2010), compared with December 2009, following the disposal of Swiss utility Alpiq (not rated) along with plans to reduce capital expenditures (capex) and make less-aggressive dividend payments in 2009. However, we believe...
Companies mentioned in this report are: A2A SpA
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