Edition:
India

Fitch cuts Telecom Italia's debt rating to 'BB+'


Monday, 8 Apr 2019 

April 8 (Reuters) - Telecom Italia::FITCH DOWNGRADES RATING TO 'BB+' OUTLOOK STABLE.FITCH SAYS DOWNGRADE REFLECTS BREACH OF OUR FUNDS FROM OPERATIONS (FFO)-ADJUSTED NET LEVERAGE THRESHOLD FOR A 'BBB-' RATING.BREACH PRIMARILY DRIVEN BY SPECTRUM COSTS AND LOWER-THAN-EXPECTED FREE CASH FLOW GENERATION.TELECOM ITALIA'S FUNDS FROM OPERATIONS IN 2018 AROUND 10 PERCENT LOWER THAN EXPECTED.COMPETITIVE PRESSURES ON EBITDA, RESTRUCTURING COSTS AND NEGATIVE WORKING CAPITAL REQUIREMENTS LIKELY TO CONSTRAIN TELECOM ITALIA'S DELEVERAGING CAPACITY IN NEXT 2-3 YRS.