The ratings reflect CDP’s unique business model, as the Italian National Promotional Institution (NPI), and the majority ownership by the Italian government (rated A-, Negative Outlook), which in our view would fully support CDP in case of need.

Additionally, the ratings reflect the very strong implicit and explicit links with the Italian sovereign in terms of assets and liabilities. Reflecting its mission as the Italian NPI, CDP’s exposure to Italian public finance (governmental and local) is very material.

The ratings also acknowledge CDP’s strong standalone fundamentals, which are notable compared to other financial institutions in the country. In particular, our analysis highlights the portfolio of equity stakes as a source of standalone strength for CDP, as it provides a reliable flow of dividends, which is a useful source of revenue diversification into non-government-related activities.

Download the updated report here.