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Investing.com -- Moody’s Ratings has upgraded Poste Italiane S.p.A.’s long-term issuer rating to Baa2 from Baa3 and its short-term issuer rating to Prime-2 from Prime-3, the agency announced Monday.
The rating agency also upgraded the Italian postal operator’s provisional rating on its senior unsecured MTN programme to (P)Baa2 from (P)Baa3, its senior unsecured debt rating to Baa2 from Baa3, and its junior subordinated notes rating to Ba1 from Ba2. The Baseline Credit Assessment was upgraded to baa2 from baa3.
The outlook has been changed to stable from positive, following the recent upgrade of the Italian government’s long-term issuer rating to Baa2 from Baa3 on November 21.
Moody’s noted that Poste Italiane’s credit quality is closely linked to that of the Italian government due to significant operational, financial, and macroeconomic connections. The Italian government is the company’s largest shareholder, and Poste holds a substantial portfolio of Italian government bonds through its banking and insurance businesses.
The baa2 Baseline Credit Assessment reflects Poste’s strong business profile as Italy’s leading postal service operator and financial services provider, along with its consistently strong operating performance and credit metrics.
During the first nine months of 2025, Poste Italiane’s revenue increased by 4% year-on-year, with operating profit reaching a record €2.5 billion, up 10% from the previous year. The company has confirmed its target of €3.2 billion adjusted EBIT for the full year, which was revised upward after first-half results.
Moody’s expects Poste to continue successfully executing its strategic plan, with funds from operations projected to remain around €3 billion per year through 2027. The company’s leverage is expected to stay below 1.5x through 2026, providing financial flexibility for increased capital expenditure, higher dividends, and accelerated M&A activity.
The postal operator maintains solid liquidity with €2 billion in unrestricted cash and financial assets as of September 2025, plus full availability under its €2.85 billion revolving credit facilities. These resources, combined with cash from operations of €2.7-2.8 billion annually, will cover capital spending of around €1.3 billion per year and dividends expected to increase toward €1.6 billion in 2026.
Moody’s indicated that any future changes to the Italian sovereign rating could result in comparable actions on Poste Italiane’s rating.
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