...Rating actions primarily resulted from changes to financial risk profiles. Even though inflation is decreasing, we expect stable revenue gains on the back of robust data demand, moderating competition, and premium fiber and 5G products. Additionally, we expect a faster rise in earnings, which benefit from cost control programs and the realization of synergies. Following a period of substantial investments to upgrade network infrastructure, fiber rollouts are near completion in several major markets and initial 5G coverage has largely been established. We therefore expect capital expenditure (capex) intensity will decline by about 0.5% annually and average 15% by 2027, thereby improving companies' free operating cash flow (FOCF). EU competition authorities continue to soften regulations. In-market consolidation approvals in Spain and the U.K. came without major structural remedies, which could encourage further consolidation attempts. Asset spinoffs (fiber, towers, and data centers) could...
