UPDATE 1-Fastweb to use cash flow to cut debt -Swisscom CEO

* Fastweb CEO rules out 2009 dividend

* Swisscom CEO says no plan to buy out Fastweb minorities

MILAN, April 7 (Reuters) - Italian broadband services provider Fastweb FWB.MI plans to use its cash flow to pay off its debt instead of for distributing as dividend, Swisscom's (SCMN.VX) chief executive said on Tuesday.

Fastweb has a "debt to EBITDA of 2.6, rather high (in) these times, (so we) decided downpayment of debt instead of a dividend", Carsten Schloter, who is also Fastweb's chairman, told Fastweb's shareholder meeting.

Fastweb is controlled by the Swiss telecommunications group, with a stake of about 82 percent, according to market regulator Consob data.

Fastweb's chief executive Stefano Parisi later ruled out the payment of a dividend for 2009 and beyond.

"Yes, the dividend payout (on 2009 results) is ruled out. It seems to me that Swisscom's CEO has been quite clear," he said, speaking on the sidelines of the meeting.

"This applies also to the following years," he added, without indicating a precise time frame.

Schloter said the policy of using cash flow to cut debt was also valid for Swisscom. He said Swisscom had a debt of 2 times earnings before interest, tax, depreciation and amortisation (EBITDA).

"The situation is such because refinancing is difficult," he said, adding that over the medium term debt costs could increase because of risks of higher inflation.

Speaking on the sidelines of the meeting, Schloter repeated that Swisscom does not intend to buy out minority shareholders in Fastweb.

He also reaffirmed Fastweb's 2009 guidance.

Fastweb shares closed up 1.25 percent at 15.42 euros.

(Reporting by Stefano Rebaudo)