To estimate Terna S.p.A.'s credit trend, we follow the S&P Regulated Utilities methodology.

### 1. Identify Industry
Terna S.p.A. is an electricity transmission operator, classified as a **Regulated Utility**.

### 2-4. 2021 Financial Estimates
*   **Reported EBITDA (2021):** Profit Loss from Operating Activities + Depreciation/Amortisation = 1,200,400,000 + 654,400,000 = 1,854,800,000 EUR.
*   **Adjusted_EBITDA (2021):** 1,854,800,000 EUR.
*   **Cash Interest (2021):** Interest Paid = 214,600,000 EUR.
*   **Cash Taxes (2021):** Income Taxes Paid = 317,900,000 EUR.
*   **FFO (2021):** 1,854,800,000 - 214,600,000 - 317,900,000 = 1,322,300,000 EUR.
*   **Reported Debt (2021):** Short-term Borrowings + Long-term Borrowings + Current Portion of Long-term Borrowings = 1,947,000,000 + 8,835,000,000 + 1,640,000,000 = 12,422,000,000 EUR.
*   **Eligible Cash (2021):** Cash and Cash Equivalents = 1,566,800,000 EUR.
*   **Adjusted_Debt (2021):** 12,422,000,000 - 1,566,800,000 = 10,855,200,000 EUR.

### 5-6. 2021 Ratios
*   **Debt/EBITDA:** 10,855,200,000 / 1,854,800,000 ≈ **5.85x**
*   **FFO/Debt:** 1,322,300,000 / 10,855,200,000 ≈ **0.1218**

### 7-9. 2022 Financial Estimates
*   **Reported EBITDA (2022):** 1,333,500,000 + 725,700,000 = 2,059,200,000 EUR.
*   **Adjusted_EBITDA (2022):** 2,059,200,000 EUR.
*   **Cash Interest (2022):** Interest Paid = 154,800,000 EUR.
*   **Cash Taxes (2022):** Income Taxes Paid = 380,100,000 EUR.
*   **FFO (2022):** 2,059,200,000 - 154,800,000 - 380,100,000 = 1,524,300,000 EUR.
*   **Reported Debt (2022):** 444,100,000 + 8,416,700,000 + 1,909,300,000 = 10,770,100,000 EUR.
*   **Eligible Cash (2022):** Cash and Cash Equivalents = 2,155,100,000 EUR.
*   **Adjusted_Debt (2022):** 10,770,100,000 - 2,155,100,000 = 8,615,000,000 EUR.

### 10-11. 2022 Ratios
*   **Debt/EBITDA:** 8,615,000,000 / 2,059,200,000 ≈ **4.18x**
*   **FFO/Debt:** 1,524,300,000 / 8,615,000,000 ≈ **0.1770**

### 12. Classification
*   **Signal 1 (Leverage):** 4.18 - 5.85 = -1.67x. Since -1.67x ≤ -0.2x, this is **Improving**.
*   **Signal 2 (Coverage):** 0.1770 - 0.1218 = +0.0552. Since +0.0552 ≥ +0.03, this is **Improving**.

Both signals agree the credit trend is Improving.

<answer>Improving</answer>