MILAN Nov 14 Ratings agency Standard & Poor's
said on Thursday it had downgraded Telecom Italia to
junk with a negative outlook due to its persistently high level
Telecom Italia rating was reduced to 'BB+' from 'BBB-'.
"Telecom Italia will likely continue to face tough
competitive, economic, and regulatory environments in Italy,"
the ratings agency said.
S&P said the negative outlook reflected the possibility of
possible further rating downside if the group fails to improve
domestic operating performances, accelerate debt reduction, and
bolster cash flow protection metrics.
Telecom Italia unveiled last week plans to raise 4 billion
euros ($5.4 billion) through a 1.3 billion euros convertible
bond and asset sales to fix its balance sheet and help fund
($1 = 0.7430 euros)
(Reporting by Danilo Masoni; editing by Francesca Landini)