Telecom Italia's boss says asset sales may not avoid downgrade
ROME, Sept 25
ROME, Sept 25 (Reuters) - Telecom Italia Chairman Franco Bernabe warned on Wednesday that the phone company risked a credit downgrade on its 29 billion euros ($39.13 billion) in debt, and an asset sale might take too long to prevent it.
Bernabe said the indebted telecoms company need a capital increase to avoid a downgrade, which would leave it with a 'junk' rating. The capital increase could be open to new and existing investors, he told the Italian Senate in a hearing, without specifying the amount.
The executive said a sale of Telecom Italia's Latin American assets required time and was not compatible with risk of a credit downgrade. ($1 = 0.7412 euros) (Reporting by Alberto Sisto, writing by Jennifer Clark; Editing by Lisa Jucca)