S&P: Wind view to negative

Standard & Poor’s said it revised the outlook on Wind Telecomunicazioni SpA to negative from stable.

The agency also said it affirmed the company’s BB- long-term corporate credit rating.

The outlook revision reflects Wind’s recent operating performance, which has been weaker than previously anticipated.

While the agency said it still assumes that the pace of revenue decline will moderate, thanks to both diminishing price aggressiveness in the market and some benefits from rapidly increasing data usage, S&P said it does not expect the Italian telecom market to return to growth before 2016.

The forecasts are based on an anticipation of continued pressure from a decline in short message service (SMS) revenues and voice usage, the agency said, and the potential for an only modest acceleration in the monetization of data growth as the Italian economy continues to suffer from weak growth prospects and rising unemployment.

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