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Aeroports de Paris (ADPFP; NR/A-/BBB+ S) S&P Downgrade

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  • It was on A Neg, now A- stable. Move is not on ADP's standalone rating but on the 1-notch uplift from French government being removed. Reminder French government was downgraded 1-notch to AA- in late May which has had follow through to sovereign uplifted co's.
  • It still sees government support but adds "we believe the government would act like a standard corporate shareholder and that financial support would come primarily from the independent regulatory regime or indirectly through support to the broader aviation sector notably to national carrier, Air France (representing about 32% of ADP's total revenue in 2023)."
  • As we have flagged previously, pickup for dropping down (now 1-notch) into BBB+ is significant/attractive; Sydney on the 4y gives 18bps and Melbourne on the 10y gives 28bps. ADP does benefit from publicly traded equity, no firm cheap views in the sector.

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