Bulletin: Deutsche Telekom Ratings And Outlook Unaffected By Proposal To Sell Its EE Stake

FRANKFURT (Standard&Poor's) Dec. 16, 2014--Standard&Poor's Ratings Services said today that the ratings and outlook on Germany's largest telecommunications services provider, Deutsche Telekom AG (DT; BBB+/Stable/A-2) remain unchanged following the announcement of an exclusivity agreement reached with U.K. telecommunications provider BT Group PLC for the potential sale of DT's 50% stake in U.K.-based mobile telecommunications operator EE Ltd. (formerly Everything Everywhere Ltd.). The agreed purchase price for EE is £12.5 billion on a debt and cash-free basis. Following the transaction, DT would hold a 12% stake in BT and would be entitled to appoint one member to BT's Board of Directors. We estimate that in addition to the 12% stake in BT, DT could receive around €0.5

...FRANKFURT (Standard & Poor's) Dec. 16, 2014--Standard & Poor's Ratings Services said today that the ratings and outlook on Germany's largest telecommunications services provider, Deutsche Telekom AG (DT; ###+/Stable/A-2) remain unchanged following the announcement of an exclusivity agreement reached with U.K. telecommunications provider BT Group PLC for the potential sale of DT's 50% stake in U.K.-based mobile telecommunications operator EE Ltd. (formerly Everything Everywhere Ltd.). The agreed purchase price for EE is ú12.5 billion on a debt and cash-free basis. Following the transaction, DT would hold a 12% stake in BT and would be entitled to appoint one member to BT's Board of Directors. We estimate that in addition to the 12% stake in BT, DT could receive around 0.5 billion in cash. At this stage, we think the potential benefits of having a 12% stake in the combined leading fixed-and-mobile telecommunications operator BT broadly offset the slightly negative impact on DT's credit metrics...

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