S&P Global said on Friday it had cut the credit rating of Telecom Italia (TIM) to “B+” from “BB-” citing a weak macroeconomic environment.
The credit rating agency said the outlook was negative and that TIM must address large debt maturities over the next 24 months amid rising interest rates and constrained debt markets.
S&P warned it could lower the rating to “B” if TIM’s EBITDA decline does not materially slow, if free operating cash flow is more negative than currently anticipated, or if liquidity deteriorates.
TIM should also engage in massive capital expenditures and execute its restructuring plan, and prepare for its structural separation, it added. Reuters