Poste Italiane long term IDR affirmed 'A+'; outlook stable – Fitch

Fitch Ratings said it affirmed Italian postal group Poste Italiane SpA’s long-term issuer default and senior unsecured ratings at ‘A+’ and short-term issuer default at ‘F1’ with a stable outlook.
The ratings reflect Poste Italiane’s strong links with the Italian State, rated ‘AA-‘ with stable outlook.
Fitch said in its view, the strong links stem from the State’s 89.5 pct ownership of Poste Italiane, the large range of state-related tasks performed by Poste Italiane, its role in public sector funding, the contractual relationship between the two as defined in the unsigned Contratto di Programma and the fact that Poste Italiane is the largest employer in Italy.
The postal services activities remain loss-making and are subsidised by the profitable financial services activities. However, the attributable operating loss narrowed in FY 2006 to 4 mln eur from a 227 mln eur loss in FY 2005 on improved efficiency and automation, and an increase — albeit delayed — in domestic mail tariffs in April 2006, Fitch said.

Fitch Ratings said it affirmed Italian postal group Poste Italiane SpA’s long-term issuer default and senior unsecured ratings at ‘A+’ and short-term issuer default at ‘F1’ with a stable outlook.
The ratings reflect Poste Italiane’s strong links with the Italian State, rated ‘AA-‘ with stable outlook.
Fitch said in its view, the strong links stem from the State’s 89.5 pct ownership of Poste Italiane, the large range of state-related tasks performed by Poste Italiane, its role in public sector funding, the contractual relationship between the two as defined in the unsigned Contratto di Programma and the fact that Poste Italiane is the largest employer in Italy.
The postal services activities remain loss-making and are subsidised by the profitable financial services activities. However, the attributable operating loss narrowed in FY 2006 to 4 mln eur from a 227 mln eur loss in FY 2005 on improved efficiency and automation, and an increase — albeit delayed — in domestic mail tariffs in April 2006, Fitch said.