Recent downgrades of the Republic of Italy by two major rating agencies has contaminated the ABS sector, pressuring not only several Italian credit linked issues but also the 1.087 billion ($1.36 billion) Societe di Cartolarizzazione Arl (SCCI) transaction; with a total of 36 tranches (15 deals) downgraded.
Fitch Ratings and Standard & Poor's cut Italy by one notch to AA-' and A+' respectively. The downgrades reflect the deterioration in Italy's public finances and increase in public debt since 2004. S&P downgraded six ABS deals - FIP Funding (two tranches for 1.994 billion), BCC Securities (148 million), Mutina Srl (412.5 million), Infrastrutture (25 billion ISPA high speed railway funding program), PRIMA FVG (51 million) and SCCI. Meanwhile, Fitch's move hit Patrimonio Uno, FIP Funding and Mutina Srl.