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UTILITIES: Italgas (IGIM Baa2/NR/BBB+): Fitch Affirms

UTILITIES
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  • Following the agreed acquisition of 2i Rete Gas, Fitch has affirmed Italgas at BBB+ stable.
  • Due to increased scale and regulated percentage Fitch sees an improved business profile and increases FFO/Net debt rating sensitivity by 0.2x and Net debt/RAB by 2%.
  • They expect Net debt/RAB to peak at 69% in 2025 and still above the 65% rating boundary in 2028. Fitch saw this at 65% for 2023.
  • Headroom for 7x FFO/Net debt ceiling is better, peaking at 6.8x in 2025 and seen near 6x in 2028. They allow this to offset the high gearing.
  • They see the post-merger targets as ambitious, with assumed improvements to 2i Rete Gas profitability to Italgas levels and gains from AI which are low visibility at this point.
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  • Following the agreed acquisition of 2i Rete Gas, Fitch has affirmed Italgas at BBB+ stable.
  • Due to increased scale and regulated percentage Fitch sees an improved business profile and increases FFO/Net debt rating sensitivity by 0.2x and Net debt/RAB by 2%.
  • They expect Net debt/RAB to peak at 69% in 2025 and still above the 65% rating boundary in 2028. Fitch saw this at 65% for 2023.
  • Headroom for 7x FFO/Net debt ceiling is better, peaking at 6.8x in 2025 and seen near 6x in 2028. They allow this to offset the high gearing.
  • They see the post-merger targets as ambitious, with assumed improvements to 2i Rete Gas profitability to Italgas levels and gains from AI which are low visibility at this point.