Tim: following the takeover bid, Moody’s raises Tim’s rating to Baa3, with a positive outlook

(Il Sole 24 Ore Radiocor) - Moody’s has upgraded TIM’s rating to Baa3 with a positive outlook. This revision concludes the process initiated on 6 August, following the unanimous approval by TIM’s board of directors of the voluntary public purchase and exchange offer put forward by Poste Italiane (Poste Italiane, Baa2 stable) for all TIM ordinary shares not yet held by Poste Italiane. The rating upgrade, the agency explains, follows the completion of Poste Italiane’s public offer, which has resulted in the latter holding approximately 86 per cent of TIM. Subsequently, in early October, Poste Italiane acquired a further 1 per cent on the open market, bringing its total stake to approximately 87 per cent. “The rating action reflects the fact that TIM is now considered a government-related issuer by virtue of the 45.2 per cent indirect stake held by the Italian State (rating Baa2, outlook stable); this has resulted in a one-notch upgrade of TIM’s Baseline Credit Assessment, bringing it to ba1”, adds Ernesto Bisagno, senior vice president at Moody’s Ratings and lead analyst for TIM. “The decision also reflects the expected improvement in TIM’s credit profile, as it will become part of a larger, more diversified and better-capitalised group following its acquisition by Poste Italiane,” adds Bisagno.

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