The "disappointing" results recorded by Telecom in the first quarter of the year "reflect the difficulties in achieving the pre-established performances" and therefore "in maintaining its current rating". This can be read in a Moody's report on the company. "We expect that Telecom Italia will not achieve some of the operating performances set for 2013, reflecting the strong headwinds that will put a strain on management's ability to achieve the financial ratios necessary to maintain the current rating", says Carlos Winzer, senior vice president of the Moody's corporate finance group. On February 11, Moody's cut the rating assigned to Telecom from Baa2 to Baa3, maintaining the negative outlook in anticipation of the worsening performance and cash generation of the group for 2013. “Further downward pressure on the rating – reads the report – it could develop if Telecom Italia does not maintain the announced debt reduction objective and its financial ratios do not gradually improve in line with the plan”. According to the rating agency, the company's recent issue of hybrid bonds for 750 million euros, together with future issues and a cut in dividends, "will ease the negative pressure on adjusted leverage". "However - adds Moody's - the current rating depends on the management's ability to stabilize the decline in domestic activity and therefore support operating cash flow and improve credit parameters". Telecom's difficulties "will be further accentuated by the decrease in the Italian GDP".
In the meantime, expectations are growing for the Telecom Italia board of directors scheduled for Thursday 23 May. The board will be called upon to make a decision on the unbundling of the access network, as promised by the president of the telecommunications giant, Franco Bernabè, during the last conference call with analysts on the quarterly accounts. On that occasion, the company's number one announced that once a decision was made by the Board of Directors, the timing of the operation would speed up. Bernabè had explained that the complexity of the project is justified by the numerous benefits that, in his opinion, the operation would bring to Telecom, emphasizing that it is a question of a reorganization and not a disposal. It was again on the possible corporateisation of the network that Bernabè was received yesterday evening by Prime Minister Enrico Letta at Palazzo Chigi.
The other hot topic at Telecom is the possible integration with 3 Italia, after the last board of directors had decided to continue the in-depth studies on the operation. According to what was reported by La Repubblica, the negotiations with the Chinese of Hutchison Whampoa risk being interrupted. Once the preliminary investigation to verify the feasibility of the merger was completed, the two groups would have found a narrow margin that allows them to continue with the operation. But, writes the newspaper, the Chinese offer is subject to Telco's approval, which should accept the fact that it becomes the company's majority shareholder. The strong partners, according to La Repubblica, have not yet decided what to do also because they have not yet received a formal proposal.
Meanwhile, in the afternoon in Piazza Affari, Telecom Italia shares still gained 0,53%, a €0,6625 per share.
