Scope updates its issuer report on CDP

The ratings reflect CDP’s unique business model, as the Italian National Promotional Institution (NPI), and the majority ownership by the Italian government (rated BBB+, Stable Outlook), which in Scope's view would fully support CDP in case of need.

Additionally, the ratings reflect the very strong implicit and explicit links with the Italian sovereign in terms of assets and liabilities. Reflecting its mission as the Italian NPI, CDP’s exposure to Italian public finance (governmental and local) is very material.

The ratings also acknowledge CDP’s strong standalone fundamentals, which are notable compared to other financial institutions in the country. In particular, Scope's analysis highlights the portfolio of equity stakes as a source of standalone strength for CDP, as it provides a reliable flow of dividends, which is a useful source of revenue diversification into non-government-related activities.

On 17 December 2018, Scope Ratings has downgraded CDP’s Issuer Rating to BBB+ (from A-) and changed the outlook to Stable from Negative. Senior unsecured debt ratings were also downgraded to BBB+, Stable Outlook. The short-term rating was downgraded to S-2, with Stable Outlook.

Download the updated rating report here.