Fitch revises Telecom Italia's view to negative

Fitch said it revised Telecom Italia SpA's outlook to negative from stable while affirming the long-term issuer default rating and senior unsecured rating at BBB-.

“TI has a strong position in its domestic telecoms market but faces a number of structural challenges from increasing competition that could exert pressure on EBITDA,” Fitch said in a news release.

The negative outlook reflects low visibility on the extent and pace of the competitive pressure, the potential that funds from operations adjusted net leverage could trend above its downgrade sensitivity of 4.2x in the next 12 to 18 months and a constrained organic deleveraging capacity, the agency added.

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