Research Update: Italy-Based IFIL SpA 'A-' Rating Placed On CreditWatch Negative On Announced Fiat Investment

Standard & Poors, September 2005

Abstract
On Sept. 16, 2005, Standard & Poor's Ratings Services placed its 'A-' long-term corporate credit rating on the Italian investment holding company IFIL SpA on CreditWatch with negative implications. At the same time, Standard & Poor's affirmed its 'A-2' short-term corporate credit rating on IFIL. The CreditWatch placement follows the announcement that IFIL will spend -535 million ($640 million) in order to avoid being diluted by the upcoming capital increase at the industrial group Fiat SpA (BB-/Stable/B) and to maintain its current share (about 30%) in Fiat's capital. We are concerned that, after the announced investment, IFIL's Fiat stake will account for a significant proportion of its holdings portfolio (48%), thus increasing concentration of the portfolio and exposure of the...

Companies mentioned in this report are: EXOR SpA
Action: On CreditWatch:Negative

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.

EXOR SpA

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