First the collapse, then the rebound. All in a few hours. In mid-morning, Telecom Italia shares rose by about three percentage points in Piazza Affari, after losing up to 2% at the start of the session. It was the trigger for the sales the downgrade by Moody's, which cut the phone company's rating to junk level (Ba1). A decision evidently awaited by investors, who had already partly absorbed the news in the previous sessions.
Telecom, however, replied to the American rating agency by reiterating that "the group is solid from both an industrial and financial point of view, as demonstrated by the generation of cash flow, which in the last 5 years amounted to 32 billion".
