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S&P cuts Telecom Italia rating to junk status

Outlook negative after contested board decisions

14 November, 18:52
S&P cuts Telecom Italia rating to junk status (ANSA) - Rome, November 14 - Standard & Poor's cut Telecom Italia's rating from BBB- to BB+, or junk status, Thursday after a string of poor results.

S&P said the outlook for Italy's biggest telecoms group, which changed management and posted over 900 million euros in losses lately, was negative.

Analysts have been bearish about TI since Spain's Telefonica took a a controlling stake and CEO Franco Bernabé stepped down, saying he had only been informed after the takeover was OK'd.

Board decisions such as selling off its Argentina unit and a huge bond issue aimed at curbing debt prompted inspections by Italian bourse watchdog Consob this week.