We have lowered our base-case assumptions regarding Deutsche Telekom AG's (DT) operating results over the next 24 months to reflect the currently weakening macroeconomic environment. We now also assume that the disposal of its wireless operations T-Mobile USA to U.S.-based AT&T will not receive regulatory approval, as we originally anticipated. We are revising our outlook on DT to stable from positive and affirming our 'BBB+/A-2' long-term and short-term corporate credit ratings. The stable outlook reflects our expectations of resilient free operating cash flow generation and a gradual reduction of the Standard&Poor's-adjusted debt-to-EBITDA ratio toward 3x over the next 24 months. On Nov. 29, 2011, Standard&Poor's Ratings Services revised its outlook on Germany's largest telecommunications services provider
