Telecom Italia crushed by Moody's: the rating agency cut the score on the issuer and on its senior unsecured issues, from 'Baa2' to 'Baa3'. The agency also announced yesterday in the late evening that there is a negative outlook on this assessment, that is, it risks being revised downwards again. The decision is directly linked to the results for 2012. In particular, the note explains, it "reflects the increased risks deriving to its business from the difficult operating context in its key market, the domestic one".
Furthermore, according to the rating agency, despite the actions taken by the company, such as the dividend cut and the hybrid bond issue plan, put in place to mitigate the effects of the deterioration in domestic performance "are not sufficient to fully offset the increased risk to the company".
