Austrian telecom operator Telekom Austria reduced leverage in 2015, and we view its credit metrics as increasingly solid for the current rating. However, we think these credit metrics may not be sustainable over the medium term, due to Telekom Austria's appetite for mergers and acquisitions and lack of defined leverage targets. We are therefore affirming our ratings on Telekom Austria at 'BBB/A-2'. The stable outlook reflects our view that, although we expect the company to pursue further acquisitions, adjusted debt to EBITDA will remain below 3.25x and funds from operations to debt above 25% on a sustainable basis. On May 25, 2016, S&P Global Ratings affirmed its long- and short-term corporate credit ratings on Austrian telecommunications network operator Telekom Austria
