Rating action

Scope Rating GmbH (Scope) has today assigned a rating of BBB- to the perpetual subordinated 8-year non-call hybrid securities issue issued by Poste Italiane S.p.A.

The latest information on the rating, including rating reports and related methodologies, is available here.

Rating rationale

The BBB- rating for Poste Italiane’s subordinated (hybrid) debt is positioned two notches below the issuer rating of BBB+/Stable. This is attributed to specific characteristics inherent in the hybrid debt offered by the entity.

Primarily, the deep contractual subordination of the rated instrument places it only ahead of ordinary share capital in terms of priority during repayment. Additionally, the perpetual tenor of the debt and the optional deferral available on every coupon payment date, subject to the issuer's discretion, further influences the rating of the hybrid debt securities.

Given the above characteristics, Scope has assigned a 50% equity content to the notes.

These features collectively contribute to the subordinated debt's rating being positioned two notches lower compared to Poste Italiane's issuer rating of BBB+/Stable.

The EUR 800m issuance in 2021 was aimed to diversify Poste Italiane’s investor base by attracting long-term international investors, strengthen Poste Italiane's capital structure by reinforcing key financial ratios, ensure stability and support growth initiatives compliant with regulatory frameworks. For further information on the rating drivers for the issuer rating (BBB+/Stable), please refer to the rating action release published on 1 December 2023 on Poste Italiane S.p.A.

Rating Committee
The main points discussed by the rating committee were: i) Poste Italiane’s issuer rating; and ii) the characteristics of Poste Italiane’s subordinated (hybrid) debt.

Methodology
The methodology used for this Credit Rating, (General Corporate Rating Methodology, 16 October 2023), is available on https://scoperatings.com/governance-and-policies/rating-governance/methodologies.
Information on the meaning of each Credit Rating category, including definitions of default, recoveries, Outlooks and Under Review, can be viewed in ‘Rating Definitions – Credit Ratings, Ancillary and Other Services’, published on https://www.scoperatings.com/governance-and-policies/rating-governance/definitions-and-scales. Historical default rates of the entities rated by Scope Ratings can be viewed in the Credit Rating performance report at https://scoperatings.com/governance-and-policies/regulatory/eu-regulation. Also refer to the central platform (CEREP) of the European Securities and Markets Authority (ESMA): http://cerep.esma.europa.eu/cerep-web/statistics/defaults.xhtml. A comprehensive clarification of Scope Ratings’ definitions of default and Credit Rating notations can be found at https://www.scoperatings.com/governance-and-policies/rating-governance/definitions-and-scales. Guidance and information on how environmental, social or governance factors (ESG factors) are incorporated into the Credit Rating can be found in the respective sections of the methodologies or guidance documents provided on https://scoperatings.com/governance-and-policies/rating-governance/methodologies.

Solicitation, key sources and quality of information
The Rated Entity and/or its Related Third Parties participated in the Credit Rating process.
The following substantially material sources of information were used to prepare the Credit Rating: public domain, the Rated Entity.
Scope Ratings considers the quality of information available to Scope Ratings on the Rated Entity or instrument to be satisfactory. The information and data supporting the Credit Rating originate from sources Scope Ratings considers to be reliable and accurate. Scope Ratings does not, however, independently verify the reliability and accuracy of the information and data.
Prior to the issuance of the Credit Rating action, the Rated Entity was given the opportunity to review the Credit Rating and the principal grounds on which the Credit Rating are based. Following that review, the Credit Rating was not amended before being issued.

Regulatory disclosures
This Credit Rating is issued by Scope Ratings GmbH, Lennéstraße 5, D-10785 Berlin, Tel +49 30 27891-0. The Credit Rating is UK-endorsed.
Lead analyst: Alvise Lennkh-Yunus, Managing Director
Person responsible for approval of the Credit Rating: Giacomo Barisone, Group Managing Director
The Credit Rating was first released by Scope Ratings on 1 December 2023.

Potential conflicts
See www.scoperatings.com under Governance & Policies/Regulatory for a list of potential conflicts of interest disclosures related to the issuance of Credit Ratings.

Conditions of use/exclusion of liability
© 2023 Scope SE & Co. KGaA and all its subsidiaries including Scope Ratings GmbH, Scope Ratings UK Limited, Scope Fund Analysis GmbH, and Scope ESG Analysis GmbH (collectively, Scope). All rights reserved. The information and data supporting Scope’s ratings, rating reports, rating opinions and related research and credit opinions originate from sources Scope considers to be reliable and accurate. Scope does not, however, independently verify the reliability and accuracy of the information and data. Scope’s ratings, rating reports, rating opinions, or related research and credit opinions are provided ‘as is’ without any representation or warranty of any kind. In no circumstance shall Scope or its directors, officers, employees and other representatives be liable to any party for any direct, indirect, incidental or other damages, expenses of any kind, or losses arising from any use of Scope’s ratings, rating reports, rating opinions, related research or credit opinions. Ratings and other related credit opinions issued by Scope are, and have to be viewed by any party as, opinions on relative credit risk and not a statement of fact or recommendation to purchase, hold or sell securities. Past performance does not necessarily predict future results. Any report issued by Scope is not a prospectus or similar document related to a debt security or issuing entity. Scope issues credit ratings and related research and opinions with the understanding and expectation that parties using them will assess independently the suitability of each security for investment or transaction purposes. Scope’s credit ratings address relative credit risk, they do not address other risks such as market, liquidity, legal, or volatility. The information and data included herein is protected by copyright and other laws. To reproduce, transmit, transfer, disseminate, translate, resell, or store for subsequent use for any such purpose the information and data contained herein, contact Scope Ratings GmbH at Lennéstraße 5 D-10785 Berlin.