Austrian incumbent telecom services provider Telekom Austria is experiencing a gradual stabilization of operating trends in its domestic market and continues to successfully trim its cost base. We think these developments will likely support improving and less volatile free cash flow generation over time, offsetting somewhat the risks from the company's flexible financial and mergers and acquisitions policies, as the growing cash flows provide more capacity to reduce debt. We are therefore revising our outlook on Telekom Austria to positive from stable, and affirming our 'BBB/A-2' corporate credit ratings and our issue ratings on Telekom Austria's debt. The positive outlook reflects our view that improving service revenue trends and continued cost savings in Austria may strengthen free operating cash flow
