On April 14, 2004, Standard&Poor's Ratings Services revised its outlook on Austrian telecommunications services provider Telekom Austria AG to positive from stable, reflecting the group's good operating performance, strong free cash flow, and reduced debt levels achieved in 2003, notwithstanding the high event risk of acquisitions. At the same time, Standard&Poor's affirmed its 'BBB' long-term and 'A-2' short-term corporate credit ratings on the group. The ratings primarily reflect Telekom Austria's leading market position in all segments of the Austrian telecoms market, strong free cash flow generation, and moderately leveraged balance sheet. These are tempered by the group's ambitions to expand into non-investment-grade markets in southeastern Europe, which entail higher risks than Austria itself, and by Austria's
