Poste Italiane's long-term issuer credit rating upgraded to 'A'

Standard & Poor’s Ratings Services said it has raised its long-term issuer credit rating on Italian Poste Italiane Group (Poste) to ‘A’ from ‘A-‘, reflecting Poste’s increasing orientation toward commercial activities.

The ratings agency also affirmed its ‘A-1’ short-term issuer credit rating on Poste, and added the outlook is stable.

The ratings reflect Poste’s strong state backing due to the group’s social importance and its economic role in the domestic market, the state’s grandfathering of almost all Poste’s financial debt, and Poste’s gradually improving stand-alone creditworthiness,’ S&P credit analyst Myriam Fernandez de Heredia said.

S&P said the ratings remain burdened, however, by Poste’s financial profile, and by uncertainties around the envisaged market liberalisation, which may result in a more competitive environment.

It added a weakening of the state’s support, along with a deterioration of the group’s financial profile, could put the ratings under pressure, but this is unlikely in the next 2-3 years.