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Oct 25 (Reuters) - (The following statement was released by the rating agency)
Fitch Ratings summarises in a new report its view of what lay behind the recent ownership changes in the Telco partnership and reviews Telefonica S.A.’s (TEF) board representation and voting interests at Telecom Italia SpA (TI). Recognising that TEF is restricted from voting on matters regarding Brazil Fitch, nonetheless, discusses the potential for industry consolidation or potential ownership changes within the Brazilian mobile market.
The agency notes that at present it does not intend to include Telco debt when assessing the consolidated metrics of TEF despite that following completion of the proposed amendment, TEF’s economic interest in Telco will increase to 70%. This treatment is likely to change however were TEF to take full ownership of Telco.
The report is available on www.fitchratings.com or by clicking on the link below.
Link to Fitch Ratings’ Report: Telefonica and the Telco Partnership: No Telco Debt Consolidation; Telecom Italia Implications