LONDON (Standard&Poor's CreditWire) Feb. 16, 2001--Standard&Poor's today affirmed its single-'A'-minus long-term and 'A-2' short-term ratings on Deutsche Telekom AG and related entities. The outlook remains negative. The ratings on Deutsche Telekom reflect the company's very strong domestic market positions across all significant telecommunications services, strong technical capabilities, and enhanced product and geographical diversification. However, intensifying domestic competition, burdensome regulatory determinations, the pursuit of a substantial expansion program, and recent initiatives to bolster Deutsche Telekom's position in the German cellular market, have adversely affected free cash flows and group profitability. As a consequence, Deutsche Telekom's business and financial profiles remain under pressure, with current forecasts of free cash flow indicating that medium-term repair of the company's balance
