On Sept. 11, 2006, Standard&Poor's Ratings Services revised its outlook on Germany's dominant telecommunications services provider Deutsche Telekom AG (DT) to negative from stable, following higher-than-expected investments in U.S. mobile licenses and the recent downward revision of group forecast guidance for 2006 and 2007. At the same time, Standard&Poor's affirmed its 'A-' long-term corporate credit and senior unsecured debt ratings and its 'A-2' short-term corporate credit rating on DT. The outlook revision reflects a weakening of DT's credit profile due to expected significant payments related to license fees for T-Mobile USA. We are also concerned about costs associated with network rollout given that it will be some time before significant free cash flows can be generated
