RIO DE JANEIRO, June 13 (Reuters) - The chief executive

of TIM Brasil, Alberto Griselli, said on Thursday

that its parent company Telecom Italia's agreement to

sell its physical network could provide an additional boost for

its business in Brazil.

"Brazil is the group's priority; the crown jewel," he told

Reuters on the outskirts of an innovation and technology event

in Rio de Janeiro.

TIM Brasil is Telecom Italia's main business, generating

around 35% of its earnings before interest, taxes, depreciation

and amortization, a percentage that will increase, according to

Griselli, after U.S. investment firm KKR obtained in

late May EU approval to buy Telecom Italia's fixed-line network.

TIM invests an average of 4.5 billion reais ($837.8 million)

in Brazil every year and, with the possibility of having fewer

restrictions from its parent company, it could have more room to

invest.

"The sale overseas makes our controller deleverage; as they

deleverage, we have more flexibility in our capital structure

here and thus more room for maneuver," said Griselli.

On Wednesday, Moody's raised Telecom Italia's credit rating

to Ba3 and maintained a positive outlook following the deal's

antitrust approval.

($1 = 5.3713 reais)