Scope assigns a new rating to CDP: A-, Stable Outlook

Cassa depositi e prestiti appoints the European Agency, that joins S&P, Moody’s and Fitch

• Sound fundamentals
• Long-term investor
• Strong governance structure
• High quality portfolio investments with stable dividend flow

Rome, 24 October 2017 h: 7:47

Cassa depositi e prestiti Spa (CDP) has appointed Scope Ratings AG (Scope) to assign a new public rating to CDP.

For the first time, the European agency Scope will be assigning a rating to CDP, in addition to those assigned by the three international agencies who currently assess CDP: S&P, Moody’s and Fitch.

The decision to increase the number of agencies assessing CDP's activity and stability aimed at obtaining a comprehensive analysis that would identify the specificities of the institute, while recognising the uniqueness of its activities and financial solidity.

The decision is also in line with the new European regulation, that encourages greater competition on the market among rating agencies. Scope, who was appointed by the German KFW, has already issued the first public rating of a European National Promotional Institution.

Scope is fully recognised as an ECAI (External Credit Assessment Institution) by the European Union, a classification based on EU standards for capital-absorption regulation (e.g. CRR and Solvency II).

Scope assigned CDP - and its senior unsecured debt - a long-term rating of “A-” with Stable Outlook. The agency's analysis focuses on the following strong points of the company:

• its fundamentals are sound, and despite the negative impact of low interest rates, far more stable than those of other financial institutions;
• given its mission and “patient” shareholders, CDP is able to support long-term investments, that other market operators are unable to support;
• the governance structure of the company makes it possible to lessen political interference. CDP indeed can only invest in projects considered to be economically and financially sustainable;
• its high quality portfolio investments guarantee a stable flow of dividends, that are a source of high income on the current interest rate scenario.

Scope’s rating to CDP is better than the other current public ratings assigned by S&P (BBB-, stable), Moody’s (Baa2, negative) and Fitch (BBB, stable) to Cassa depositi e prestiti.