Strong market positions in Germany Strong underlying cash flow generation, with an ongoing emphasis on efficiency Portfolio diversification across Europe and in the U.S. Measured financial policy High gross debt, with minimum rating headroom for large acquisitions Uncertain returns on ambitious investment plans due to competition and/or regulation High competition in domestic market, increasing in other markets Low growth prospects in domestic market The ratings on Germany's largest telecommunications services provider Deutsche Telekom AG (DT) primarily reflect the group's solid business position in several markets, with operations that constitute a diversified base of free cash flow-generating businesses. The ratings also reflect the continued uptake of broadband in Germany, the pace of which is slowing, but where DT achieved a sizable
