Telecom Italia Cut to Junk by S&P After Moody’s Downgrade
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Telecom Italia SpA had its rating cut to junk by Standard & Poor’s, which said Italy’s biggest phone company is unlikely to reduce debt fast enough to offset declining earnings.
The ranking was lowered by one step to BB+ from BBB-, with a negative outlook, S&P said yesterday. Moody’s Investors Service last month stripped Telecom Italia of its investment grade after the resignation of Executive Chairman Franco Bernabe. The carrier, struggling for years to pare its debt pile, reported adjusted net debt of $38 billion as of Sept. 30.