Research Update: Telecom Italia Remains On Watch Positive; New Euro And Dollar Exchange Notes Rated 'B+/Watch Pos'

On May 17, 2024, Telecom Italia SpA (TIM) completed an exchange offer of about €5.5 billion in aggregate principal amount on its euro and US dollar unsecured notes maturing beyond 2026. The original notes are being exchanged for an equal aggregate principal amount of the new euro and dollar notes (new notes) and terms are substantially the same as the terms of the corresponding series of the original notes. Our 'B+' long-term issuer credit rating on TIM and the remaining original unsecured notes remain on CreditWatch with positive implications, where we placed them on Nov. 9, 2023. At the same time, we assigned our 'B+' issue rating and '3' recovery rating to the new notes of an aggregate €5.5 billion

...- On May 17, 2024, Telecom Italia SpA (TIM) completed an exchange offer of about 5.5 billion in aggregate principal amount on its euro and US dollar unsecured notes maturing beyond 2026. - The original notes are being exchanged for an equal aggregate principal amount of the new euro and dollar notes (new notes) and terms are substantially the same as the terms of the corresponding series of the original notes. - Our 'B+' long-term issuer credit rating on TIM and the remaining original unsecured notes remain on CreditWatch with positive implications, where we placed them on Nov. 9, 2023. - At the same time, we assigned our 'B+' issue rating and '3' recovery rating to the new notes of an aggregate 5.5 billion issued by TIM, Telecom Italia Finance, and Telecom Italia Capital. We also placed the issue rating on CreditWatch with positive implications. The '3' recovery rating indicates our expectation of meaningful recovery (50%-70%; rounded estimate: 50%) in the event of a payment default. -...

Research Update