On June 25, 2003, Standard&Poor's Ratings Services assigned its 'BBB' long-term and 'A-2' short-term corporate credit ratings to Austria-based telecommunications services provider Telekom Austria AG. The outlook is stable. The ratings primarily reflect the company's leading market position in all segments of the Austrian telecoms market and its moderate financial profile. The latter is tempered by Austria's very competitive market in both fixed-line and mobile telephony services and the company's ambitions to expand into noninvestment-grade markets in southeast Europe, which entail higher risks. Austria is one of the most competitive telecoms markets in the EU. Telekom Austria mitigates fierce competition and strong pressure on fixed-line voice revenues through severe tariff cuts and extensive layoffs. The market entry of
