NTT's mobile communications business, NTT DOCOMO, faces intensifying competition. Therefore, we believe the likelihood that its profitability will recover in the next one to two years has declined. We are lowering our long-term ratings on both NTT and NTT DOCOMO to 'AA-'. We are affirming the 'A-1+' short-term ratings on both companies. The outlook is stable. This reflects our view that in the next couple of years new services and cost reductions will make continuous deterioration in the profitability of the two companies less likely, despite persistent competition in their main businesses. On Jan. 20, 2015, Standard&Poor's Ratings Services lowered to 'AA-' its long-term corporate credit and debt ratings on Nippon Telegraph&Telephone Corp. (NTT). The downgrade
