The chief executive of Telecom Italia has admitted the company may not be able to avoid further credit downgrades, despite plans to raise up to 4 billion euros ($5.36 billion).
Shares in the company fell sharply on Friday – after failing to open at the start of trade – as the company revealed plans aimed at staving off downgrades on its debt.
But in an exclusive interview with CNBC, Telecom Italia CEO Marco Patuano said: "Rating agencies will evaluate our plans, but I'm not sure that they will keep us (at) investment grade. If they will not, what is really important is that we have a super solid liquidity in our hands."
The heavily indebted telecoms giant announced late Thursday that it would raise 1.3 billion euros in a convertible bond issue and sell its Argentine business after an unsolicited bid for the unit. It also wants to sell and lease back thousands of mobile towers it owns in Italy and Brazil.
Shares in company provisionally closed down 5.56 percent on Friday following the news.
(Read more: Telecoms industry in 'eat-or-be-eaten' mode)
The company hopes the restructuring will enable it to cuts its debt - 28.2 billion euros as of September 30 – and avoid other ratings agencies following Moody's, which cut its rating to junk last month.