Telefónica S.A.

News

• 11.05.2023
  Creditreform Rating has affirmed the unsolicited corporate issuer rating of Telefónica S.A. as well as the unsolicited corporate issuer rating of Telefónica Emisiones S.A.U. and Telefónica Europe B.V. at BBB-. Creditreform Rating has also affirmed the unsolicited corporate issue ratings of the long-term local currency senior unsecured notes issued by Telefónica Emisiones S.A.U. and Telefónica Europe B.V. at BBB-. These issues are included in the list of ECB-eligible marketable assets, which can be found on the ECB's website. The outlook for the ratings is stable. For more details regarding the ratings, please refer to our update report below.
• 22.12.2022
  Creditreform Rating has affirmed the unsolicited corporate issuer rating of Telefónica S.A. as well as the unsolicited corporate issuer rating of Telefónica Emisiones S.A.U. and Telefónica Europe B.V. at BBB-. Creditreform Rating has also affirmed the unsolicited corporate issue ratings of the long-term local currency senior unsecured notes issued by Telefónica Emisiones S.A.U. and Telefónica Europe B.V. at BBB-. These issues are included in the list of ECB-eligible marketable assets, which can be found on the ECB's website. The outlook for the ratings is stable. For more details regarding the ratings, please refer to our update report below.
• 07.07.2022
  Creditreform Rating has assigned the unsolicited corporate issuer ratings of BBB- of Telefónica S.A., Telefónica Emisiones, S.A.U. and Telefónica Europe, B.V. as well as the EUR-denominated long-term senior unsecured issues of the named issuers with the addendum Watch UNW. The debt securities are included in the ECB's list of eligible marketable assets, which is available on the European Central Bank's website. An outlook is not applicable. For further details on the ratings, please refer to the press release below.
• 21.07.2021
  Creditreform Rating has confirmed the unsolicited corporate issuer rating of Telefónica S.A. (Telefónica) at BBB- and changed the outlook from negative to stable. This change is based on the improved result of the financial ratio analysis in 2020, and the expectation that overall performance will continue to be supported by measures to streamline operations and to increase digitalization as well as by advancing pandemic recovery. Proceeds from ongoing divestitures also contribute to the stable outlook, as Telefónica plans to use it primarily to reduce debt levels. Nevertheless, it remains to be seen whether operating performance will improve on a sustainable basis after all investments and strategic measures have been taken by the Company, and in the face of ongoing uncertainty in the Company´s business environment. Based on the Company´s solid market and leading position, in many of its key markets, its scalable and diversified business model, as well as its comfortable liquidity position and proven access to financial markets, we confirm the rating of Telefónica at BBB-.
• 23.09.2020
  Creditreform Rating has confirmed the unsolicited corporate issuer rating of Telefónica S.A. (Telefónica) at BBB- and changed the outlook from stable to negative. This change is based on a substantial decline in the Company´s 2019 results and, in H1 2020, in revenues as well as in results, predominantly due to negative currency effects in Latin America, non-recurring effects, and in H1 2020 as a result of social and macroeconomic distortion due to the COVID-19 pandemic, adversely affecting the rating relevant key figures. In addition, the further economic consequences are still characterized by uncertainty, which could dampen the business climate, especially in Latin America, causing further devaluation of domestic currencies against the euro. Based on the Company´s strong market and leading position, especially in Europe, its scalable and sustainable business model, characterized by growth options especially in digitalization, and fiberglass, good access to capital markets combined with solid liquidity, we confirm the rating of Telefónica at BBB-.
• 10.12.2019
  Creditreform Rating has carried out an unsolicited corporate issuer rating of Telefónica, S.A. The rating has been set to BBB- with stable outlook. The current rating of BBB- attests a highly satisfactory level of creditworthiness to Telefónica, S.A., which represents a low to medium default risk. The rating result of Telefónica, S.A. is based on its high degree of diversification, and its solid and leading position in many of its key markets. Despite unfavorable market conditions, adversely affecting revenues and EBITDA in 2018, the Company has improved its net profit, and has continued to reduce debt as planned, which is noticeable in the relevant key figures. The investments of Telefónica in the past years and its focus on digitalization has brought about diversification and lead to more efficiency, increasing its competitiveness and achieving organic growth. In the first nine month of this year, the Company recorded for the first time an increase in revenues since a long period, despite disinvestments in Central America and impairing depreciation of the Brazilian real and the Argentine peso against the EURO. At the end of November, the Company has presented a new strategic plan. With strategic measures the Company in particular has planned to generate more than EUR 2 billion of additional revenues and an increase of 2 percentage points in operating cashflow margin by 2022. Nevertheless, It remains to be observed if the Company will be able to continue its deleveraging path in the short and medium term due to the high investment requirements which we expect for example in line with 5G investments.
• 27.04.2018
  Creditreform Rating has carried out an unsolicited rating of Telefónica S.A. The rating has been set to BBB- with stable outlook.