Telecom Italia (TLIT.MI) shares and bonds fell after ratings agency Moody’s downgraded the phone group’s credit rating.
Moody’s cut TIM’s rating by one notch to ‘B1’, citing expectations that the former phone monopoly’s leverage; would remain high and free cash flow would stay negative over the next two to three years.
By 0815 GMT shares were down over 2% at 0.2155 euros, close to a year time low hit; after the collapse of the Italian government seen as likely to hamper the phone group’s plans to create a single network.
Yields of Telecom Italia’s bonds were up across the curve, with the company’s bond maturing in January 2033 yielding 7.17%, up from 6.995% at previous close.
-REUTERS.
