Fitch Upgrades Telecom Italia to BB+ After Sale of Fixed-Line Network

Fitch raised Telecom Italia's rating to BB+ and assigned a stable outlook. The upgrade reflects improved cash flow generation at Telecom Italia and stabilizing leverage at the company. Fitch made the determination after Telecom Italia sold its fixed local access network and other non-core assets.

@FirstSquawk reported the rating action. The move marks a step up from the previous level, though the exact prior rating was not detailed in the announcement. Fitch's assessment pointed to the asset sales as a key driver.

Those transactions allowed Telecom Italia to strengthen its balance sheet by shedding non-core holdings while focusing on remaining operations. The stable outlook signals that Fitch does not anticipate near-term changes in the rating. This assessment incorporates expectations for continued cash flow performance following the divestitures.

Telecom Italia's sale of the fixed local access network represented a major portfolio shift. The transaction removed a capital-intensive segment that had weighed on leverage metrics in prior periods. By divesting both the fixed local access network and other non-core assets, the company generated proceeds that contributed directly to debt reduction.

Fitch cited those outcomes as central to the improved credit profile. The rating agency has now placed Telecom Italia at BB+, one notch into speculative-grade territory but with a stable trajectory. The combination of stronger cash flows and lower leverage provided the foundation for the upgrade.

No additional details on the timing or financial scale of the asset sales were included in the Fitch statement. The rating action stands alone as the verified development.