NEW YORK (TheStreet) -- Shares of Telefonica (TEF) - Get Report closed higher by 5.71% to $9.25 on Wednesday, as the Spanish integrated and diversified telecommunications company announced it is shafting its plan to sell a stake in its British wireless carrier O2Bloomberg reports.

Telefonica's 15-month sales effort of its U.K. unit was halted after Britain voted to leave the European Union (E.U.) last Thursday, which sent global markets into turmoil, the company announced this morning.

Markets across the world including the U.S. did begin to recover today as the uncertainties surrounding Brexit start to ease.

However, Telefonica "continues to explore different strategic alternatives for O2, to be implemented when market conditions are right," the company told Bloomberg.

Prior to Brexit, the company was considering an initial public offering of O2 after the E.U. blocked its $13.8 billion sale to CK Hutchison Holdings last month, which would have considerably reduced Telefonica's $55.7 billion in debt, according to Bloomberg.

Furthermore, as the pound and U.K. market continue to be pressured by Brexit, Moody's is considering a credit downgrade on Telefonica stock.

Separately, TheStreet Ratings rated Telefonica as a "hold" with a score of C-.

The primary factors that have impacted our rating are mixed. The company's strongest point has been its a solid financial position based on a variety of debt and liquidity measures that we have looked at.

At the same time, however, TheStreet Ratings also finds weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

You can view the full analysis from the report here: TEF

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

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