Why Does Moody’s Downgrade A Healthy Moby?

In spite of a healthy EBITDA of EUR 135 million in 2017, Moody’s Investors Service downgraded Moby S.p.A. by two notches on May 14th.

The reasons can be found in uncertainties:

• Challenging trading conditions with tough competition.
• Moody’s does not think that new initiatives on Corsica and Sicily will run break-even in 2019.
• The Italian anti-trust regulator imposed a fine of EUR 29 million for abusing its dominant position on three routes between continental Italy and Sardinia. Moby will appeal the decision.
• The ongoing investigation from the European Commission into Tirrenia-CIN’s subsidies received since 2012.