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04 October 2019 by jbchevrel

Atlantia S.P.A. (ATLIM) widened more than 100bp since the roll, 5y CDS now higher than 250bp. Today it is wider by +15bp while the xover index is tighter -4.75. ATLIM has threatened to pull out of the Alitalia (ALITSA) rescue having sent a letter to the Italian Government flagging two specific issues. 1/ ATLIM is not happy with aspects of the bailout plan and their advisers are telling them not to invest 2/ the threat of concession revocation is making ATLIM reluctant to invest due to concerns about their financial resources and their need to protect shareholders and employees. As a result, there were emergency meetings in the government yesterday surrounding the Alitalia bailout, where alternative investors could not be found, while ATLIM’s general manager Guenzi also met the CEO of Ferrovie to further discuss the Alitalia plan. This is the first time ATLIM has drawn a direct link between the ALITSA bailout and the future of the ASPI concession and the article from La Repubblica suggests the Italian government also accepts it, despite the more extreme 5-Star Movement’s willingness to keep these issues separate, not give in to “blackmail” by ATLIM, etc. PM Conte reportedly wants to mediate and he seemingly had been considering a removal of the A10 concession, a pledge to pay a fine and a possible cut in tariffs as punishment for ATLIM. The name is currently rated Baa3 (negative) / BB+ (negative).