Telefonica's CFO has pledged to reduce the operator group’s net debt to about EUR50 billion by year-end.

Ángel Vilá told an investor conference this week that the group aims to raise more than EUR4 billion in restructuring and asset sales or flotations to pay-off debts, reports the Financial Times.

The company had net debt of about EUR56 billion in September, but has reduced this to EUR52.8 billion via the float of a minority stake in its German business and the divesture of its call centre operations, Atento.

Vilá said the firm was now “reviewing options” in Latin America where further IPOs of assets are expected.

Telefonica has seen its credit rating downgraded this year amid concerns over the firm’s exposure to the Spanish financial crisis and its ability to service its large debts.

Vila said he was confident the cash-raising moves would address the concerns of rating agencies having “eliminated refinancing risk” for 24 months.

But he played down speculation that Telefonica could be poised to sell its indirect stake in Telecom Italia to Orascom founder Naguib Sawiris, claiming that no approach had been made.