Rating risk

With regard to Snam’s long-term debt, on 30 January 2013 and 7 February 2013, Standard & Poor’s and Moody’s confirmed their respective A- (negative outlook) and Baa1 (negative outlook) ratings. Both agencies consider that the negative outlook for Snam’s rating is mainly due to the negative outlook for Italian sovereign debt. Both agencies currently place Snam’s long-term rating one notch above that of the Republic of Italy (BBB+ with negative outlook from Standard & Poor’s; Baa2 with negative outlook from Moody’s). Based on the methodology adopted by the rating agencies, the downgrade by a notch of the current rating of the Republic of Italy would trigger a downward adjustment of Snam’s current rating by at least a notch.