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UPDATE 1-Political crisis buoys Italy's Atlantia as risk of concession loss recedes

recedes@ (Wrties through with details, background)

MILAN, Aug 9 (Reuters) - Shares in Italian toll road operator Atlantia rose more than 2% in early trading on Friday as a possible breakdown in the government was seen as lessening the prospect it could lose its lucrative motorway concession.

The stock bucked a sinking trend on Milan's main equity index, which was accompanied by rising sovereign bond yields, the morning after Deputy Prime Minister Matteo Salvini called for an early election.

Atlantia's concession to operate around 3,000 km of motorways, about half the Italian network, has been under threat from Salvini's coalition partner 5-Star since a bridge it operated in northern Italy collapsed last year.

Salvini, leader of the far-right League, pulled the plug on the government on Thursday, diluting that threat to a business unit which brings in a third Atlantia's core profit.

"Atlantia is rising because the 5-Star have always supported revoking the concession, and the government crisis blows this away," a Milan-based trader said.

Atlantia declined comment.

During a fractious 14 months in government, 5-Star accused the League of being too soft on Atlantia, which was responsible for maintaining the Morandi bridge in Genoa when it collapsed last August, killing 43 people.

5-Star has more parliamentary seats than the League, but polls say its partner now enjoys twice as much voter support.

Atlantia, owned by the Benetton business dynasty, may also be less likely to invest in the rescue of struggling airline Alitalia, the trader added.

Pumping money into Alitalia, which successive Italian governments have tried and failed to return to profit, could have have been seen by Atlantia as a means of improving its relationship with Rome, analysts said.

Atlantia has said it would be in its own interest to invest in Alitalia, because it operates Rome's main airport Fiumicino, which is Alitalia's hub and which could suffer if Alitalia goes belly-up.

Italy's blue-chip index fell 1.7% by 0755 GMT, while Atlantia shares were up 1.8% at 23.87 euros, having risen more than 3% after the market open.

($1 = 0.8938 euros) (Reporting by Isla Binnie and Giancarlo Navach Editing by David Holmes)