LONDON (Standard&Poor's) July 10, 2003--Standard&Poor's Ratings Services said today it affirmed its 'BBB+' long-term and 'A-2' short-term corporate credit ratings on Germany-based fixed-line and mobile telecommunications operator Deutsche Telekom AG and related entities following a review. The outlook is stable. "The ratings on Deutsche Telekom continue to be underpinned by the expectation that the group can deliver on its demanding free cash flow targets despite its aggressive leverage," said Standard&Poor's credit analyst Guy Deslondes. "Deutsche Telekom is targeting €5 billion-€6 billion free cash flow per year from 2003, and Standard&Poor's assessment of the group's credit quality is heavily reliant on the expectation of this free cash flow generation over the medium term."
