Deutsche Telekom AG's Ratings Lowered to 'A-'; Outlook Negative

LONDON (Standard&Poor's CreditWire) Oct. 6, 2000--Following a broad review of the competitive, regulatory, and strategic pressures facing Deutsche Telekom AG (DTAG), Germany's largest telecommunications service provider, Standard&Poor's today lowered its long-term ratings on DTAG to single-'A'-minus from double-'A'-minus and its short-term ratings to 'A-2' from 'A-1'-plus. All ratings have been removed from CreditWatch where they were placed with negative implications on April 28, 2000, following the acquisition by DTAG of its first European third-generation (3G) mobile services license. The outlook is negative. (See list below for all rating actions.) The ratings on DTAG reflect the company's very strong domestic market positions across all significant telecommunications services, its strong technical capabilities, and enhanced product and geographical diversification.

...LONDON (Standard & Poor's CreditWire) Oct. 6, 2000--Following a broad review of the competitive, regulatory, and strategic pressures facing Deutsche Telekom AG (DTAG), Germany's largest telecommunications service provider, Standard & Poor's today lowered its long-term ratings on DTAG to single-'A'-minus from double-'A'-minus and its short-term ratings to 'A-2' from 'A-1'-plus. All ratings have been removed from CreditWatch where they were placed with negative implications on April 28, 2000, following the acquisition by DTAG of its first European third-generation (3G) mobile services license. The outlook is negative. (See list below for all rating actions.) The ratings on DTAG reflect the company's very strong domestic market positions across all significant telecommunications services, its strong technical capabilities, and enhanced product and geographical diversification. DTAG's substantial expansion program is designed to diversify away from the company's traditional earnings base while...

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