Nutty Bond Wonderland in Europe Just Reached New Heights of Madness

by Nick Corbishley
Wolf Street

Not even the “bankruptcy” word hanging over super-troubled Italian infrastructure giants Atlantia and Autostrade, whose bridge collapsed last year, can get their bonds to reflect any kind of serious risk.

On Monday, Standard & Poor’s slashed Italian infrastructure giant Atlantia SpA’s credit rating by three notches, from investment-grade BBB- to BB- (“junk”) amid concerns the Italian government could revoke its all-important road concessions business in Italy in response to the collapse of the Morandi bridge in Genoa in 2018. This downgrade affects Atlantia’s roughly €36 billion of debt that is now considered “junk.”

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