Telecom Italia shares, bonds drop after Moody’s credit rating cut
2022.07.22 11:58
FILE PHOTO: The Tim logo is seen at its headquarters in Rome, Italy November 22, 2021. REUTERS/Yara Nardi
ROME (Reuters) – Telecom Italia (BIT:TLIT) shares and bonds fell on Friday after ratings agency Moody’s (NYSE:MCO) downgraded the phone group’s credit rating.
Moody’s on Thursday 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 on Thursday, after the collapse of the Italian government was 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
