Germany's largest telecommunications services provider Deutsche Telekom AG (DT) has agreed to sell its wireless operations T-Mobile USA to U.S.-based AT&T in a cash and stock transaction totaling $39 billion (about €28 billion). If completed, the transaction would significantly improve DT's credit metrics and slightly enhance its business risk profile, in our view. We are revising our outlook on DT to positive from stable and affirming our 'BBB+/A-2' long-term and short-term corporate credit ratings. The positive outlook reflects the possibility of an upgrade in 2012 if DT sells its U.S. business, sustainably reduces adjusted leverage to the 2.5x-3x range, and stabilizes revenues and margins. On March 24, 2011, Standard&Poor's Ratings Services revised its outlook on Germany's largest telecommunications
