The American rating agency has raised the issuer ratings of Île-de-France Mobilités from “A+” to “AA-”, the same rating as the French state, the Île-de-France region.
The Paris transport organizing authority maintains its good rating. On December 5, the American rating agency Fitch Ratings raised the long-term issuer default ratings (IDR) in foreign currencies and local currency, assigned to Île-de-France Mobilités (IDFM). The rating upgrade reflects an improvement in the assessment of IDFM's financial profile thanks to the implementation in 2024 of the protocol signed with the State in September 2023. The negative outlook associated with the AA- rating, identical to other issuers French, is explained by the negative outlook of the sovereign rating.
The rating agency, whose main offices are based in New York and London, estimates that IDFM has “robust” revenues, notably the Mobility Payment (48% of operating revenues in 2023) and paid ticketing revenues. by users of transport networks (34%). “Ticket revenue will continue to grow,” according to the rating agency cited by IDFM, due to the increase in attendance and the expansion of the network. The solidity of the revenue trajectory is reinforced by the various levers provided for in the protocol signed with the State.
Concerning the debt structure of Île-de-France Mobilités, it is considered “healthy and risk-free” by Fitch. The average maturity of Île-de-France Mobilités debt was, at the end of 2023, twelve years and the average cost of debt was low, at 1.3%. As for the debt amortization profile, this is relatively smooth. Fitch also expects the interest coverage ratio (EBITDA / financial charges) to increase in the coming years.
IDFM specifies that this debt is explained by the increase in investment spending with more than 36 billion euros invested over the next ten years in the transport network. “These investments are essential to improve the quality of public transport, promote the development of the Ile-de-France region and its services, and address the main challenge of the 21st century, the fight against climate change,” says IDFM in a press release.
“This enhancement will strengthen the confidence of the markets and investors in the financial situation of Île-de-France Mobilités, considered by the agency to be a key player in the public transport system and the economy of the Île-de-France region. -de-France, which represents more than 30% of the national GDP”, welcomes IDFM before adding: “This increase in the issuer rating proves that the financial strategy adopted by Île-de-France Mobilités is controlled and allows us to continue our investments each year to revolutionize the way we travel in Île-de-France.”
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