Fitch cuts Telecom Italia's credit rating from 'BBB' to 'BBB-'. The agency communicates it in a note. The outlook (prospects) is negative.
The downgrade, explained Fitch, "reflects the worsening of the operating conditions of Telecom Italia's domestic business due to regulatory pressure, the protracted price war in the furniture market and the presence of a weak economy". "The erosion of Telecom Italia's cash generation - Fitch also stated - appears destined to continue in 2014". The 'BBB-' level represents the last step before the credit rating is cut to 'junk'.
Fitch's downgrade comes shortly after the presentation of Telecom's semi-annual accounts, closed with a loss of 1,4 billion euros due to the write-down of goodwill, and with a downward revision of the year-end targets on EBITDA.
As if that weren't enough, today is the news that Vodafone has opened a civil case against Telecom.
