10 September 2018 - 19:17
MOODY’S DOWNGRADES ASTALDI’S RATING
Astaldi S.p.A. announces that, as of today’s date, the rating agency Moody’s Investors Service (“Moody’s”) has lowered its Corporate Family Rating of Astaldi S.p.A. (“Astaldi”) to ‘Caa2’ from ‘Caa1’ and its Probability to Default rating to ‘Caa2-PD’ from ‘Caa1-PD’. The outlook on all ratings remains Negative.
Moody’s decision reflects increasing likelihood of Astaldi’s default primarily owing to further delays in the receipt of a binding offer for the Astaldi’s stake in the Third Bosphorus Bridge concession in Turkey, which is the key milestone triggering a number of planned financial strengthening measures to an inadequate liquidity profile with sizeable debt maturities in the coming months.
The maintenance of Negative Outlook reflects the Moody’s view that the Group might not be able to execute the envisaged plan on a timely manner or with an outcome that will be below original expectation. According to Moody’s, a deterioration of the credit quality of the Government of Turkey (Ba3, Negative) and Turkish lira weakness, which creates pressure on the valuation of Turkish assets, further adds to the uncertainty regarding the success of the envisaged plan.