We expect Telekom Austria to face strong operating pressures over the next two years. In our view, this is likely to result in a marked deterioration of the company's credit measures. We are lowering our long-term credit rating on the group to 'BBB' and affirming the 'A-2' short-term credit rating. We are removing the ratings from CreditWatch where they were placed with negative implications on Dec. 11, 2009. The stable outlook reflects our expectation that the group will continue to generate positive free cash flow and maintain a ratio of adjusted net debt to EBITDA of less than 3x. On March 30, 2010, Standard&Poor's Ratings Services lowered its long-term corporate credit rating on Austrian telecommunications operator Telekom Austria
