On March 17, 2008, Standard&Poor's Ratings Services placed its 'A-' long-term corporate credit rating on Germany's largest telecommunications services provider Deutsche Telekom AG (DT) on CreditWatch with negative implications. This follows the company's announcement that it plans to purchase an approximate 20% stake in Greek telecommunications provider Hellenic Telecommunications Organization S.A. (OTE; BBB+/Negative/A-2) for €2.5 billion. At the same time, the 'A-2' short-term corporate credit rating on DT was affirmed. The CreditWatch placement primarily reflects the expected increase in leverage that would result from successful completion of the proposed acquisition at a time when DT faces continuing operating pressures and limited flexibility at the rating level. For further details, see our comment "Deutsche Telekom's EBITDA Growth And Cash
