Moody's could cut Telecom Italia

Moody's Investors Service said it placed the ratings of all debts for (or guaranteed by) Telecom Italia SpA, and all supported debts within its family of issuers, including the Baa3/provisional Baa3 senior unsecured and the Ba2 subordinated ratings, on review for downgrade.

The action follows the company's announcement of its second quarter 2013 results, updated management outlook and revised financial guidance.

"Our decision to place Telecom Italia's ratings on review for downgrade is driven primarily by the deterioration in its domestic revenues and EBITDA resulting from the worsening economy, higher unemployment, adverse regulatory effects and more intense competition in Italy," Carlos Winzer, Moody's senior vice president and lead analyst for Telecom Italia, said in a news release. "The company's inability to meet its domestic and group EBITDA targets has also raised concerns."

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