Madrid, March 25, 2015 -- Moody's Investors Service has today changed the outlook on the ratings of Telefonica S.A. (Telefonica) and its guaranteed subsidiaries to stable from negative. Moody's has also affirmed all the ratings. The change in outlook reflects Moody's expectation of an improved operating environment in Spain, which will drive better revenue trends, as well as the expected use of the cash proceeds from the recently announced sale of Telefonica'sUK subsidiary O2 UK (O2) to improve leverage.

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