Il Telecom Italia rating was put under observation by Moody's for a possible downgrade. The agency specified that any downgrade will come after the release of the telephone company's second-quarter results, revised guidance and new management forecasts. To date, Telecom Italia's rating is Baa3. At the start, the company's stock lost almost a point and a half in Piazza Affari, only to recover in the following minutes.
“Our decision to place Telecom's ratings on watch for a downgrade is driven primarily by the deterioration in its domestic revenues and EBITDA, due to a worsening economy, rising unemployment, unfavorable regulatory effects and tighter competition. more intense in Italy”, explained Carlos Winzer, senior vice president of Moody's and lead analyst for Telecom Italia.
“The company's inability to meet its EBITDA targets in Italy and at the group level also raised concerns,” concluded Winzer.
