Fitch Ratings confirmed the SACE long-term rating at A- with negative outlook and that shortly to F2. The decision follows the conclusion of the review launched last March, which assessed the evolution of SACE's profitability, the changes in the capital structure and governance after the acquisition by Cassa Depositi e Prestiti in December 2012. The The negative outlook reflects the continued weakness of SACE's insurance sector due to both growing demands from political power and from commercial risks in the face of lower insured volumesdespite the underlying growth trend of Italian exports.
A future downgrade could come from a continued decline in insurance underwriting or a deterioration in the securities portfolio, as well as a capitalization of less than the sum of 1.5 – 2 billion euros. In reverse, a revision of the Italian outlook from negative to stable could lead to a corresponding change of perspective towards SACE itself, vulnerable to changes in the creditworthiness of the public sector in Italy, which represents 50% of investment securities and interest. A downgrade of Italy would therefore cause a parallel impact on the assessments of SACE itself, further demonstration of the fact that it is with the real economy that one must always reckon.
