Standard&Poor's Ratings Services said today its ratings and outlook on Germany-based telecommunications operator Deutsche Telekom AG (BBB+/Stable/A-2) remain unchanged following the announcement of Deutsche Telekom's preliminary results for year-end Dec. 31, 2002. "The ratings on Deutsche Telekom continue to be underpinned by the expectation that the group can deliver on its demanding free cash flow targets," said Standard&Poor's credit analyst Peter Kernan. "Deutsche Telekom is excessively leveraged for the ratings and it is assumed that the group will improve its ratio of lease adjusted net debt to EBITDA to about 3x through free cash flow generation and sales of noncore assets." Deutsche Telekom is now generating sustainable free cash flow and is targeting free cash flow
