Moody’s Downgrades Telecom Italia SpA's Ratings with Negative Outlook


Tuesday, 8 Oct 2013 05:41pm EDT 

Telecom Italia SpA announced that Moody’s has downgraded its rating on the Company from Baa3 to Ba1, with a negative Outlook. In response to Moody's downgrading, Telecom Italia reported that the Group is solid both industrially and financially, as demonstrated by its cash flow generation (expressed as the difference between gross operating margin and investments) of EUR 32 billion in the last five years. Over the same period of time, it has reduced its net financial position by EUR 7.6 billion, while investing a total of EUR 25 billion in the countries it operates in. Deleverage is a priority for Telecom Italia, as part of its plan for the sustainable development of its industrial activities. Profitability at 30 June 2013 stood at 38.9% at the Group level, reaching a 48.7% on its activities on the domestic market. 

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