Bulletin: Deutsche Telekom Ratings And Outlook Unaffected by T-Mobile Share Buyback Program

FRANKFURT (S&P Global Ratings) Dec. 7, 2017--S&P Global Ratings said today that T-Mobile US Inc.'s (BB+/Stable/--) announcement of a $1.5 billion share repurchase program does not impact the ratings or outlook on the telecom company's majority shareholder Deutsche Telekom AG (BBB+/Stable/A-2). Despite the program, which we expect to increase our calculation of adjusted debt to EBITDA by about 0.05x, and potential purchases of additional T-Mobile U.S. stock by Deutsche Telekom, we continue to expect Deutsche Telekom will post adjusted debt to EBITDA of less than 3.3x and adjusted free operating cash flow to debt, before spectrum payments, of at least 10% in 2018.

...FRANKFURT (S&P Global Ratings) Dec. 7, 2017--S&P Global Ratings said today that T-Mobile US Inc.'s (##+/Stable/--) announcement of a $1.5 billion share repurchase program does not impact the ratings or outlook on the telecom company's majority shareholder Deutsche Telekom AG (###+/Stable/A-2). Despite the program, which we expect to increase our calculation of adjusted debt to EBITDA by about 0.05x, and potential purchases of additional T-Mobile U.S. stock by Deutsche Telekom, we continue to expect Deutsche Telekom will post adjusted debt to EBITDA of less than 3.3x and adjusted free operating cash flow to debt, before spectrum payments, of at least 10% in 2018. Only a rating committee may determine a rating action and this report does not constitute a rating action....

Bulletin