On Aug. 1, 2006, Standard&Poor's Ratings Services revised its outlook on Austrian telecommunications operator Telekom Austria AG to positive from stable. At the same time, the long- and short-term corporate credit ratings were affirmed at 'BBB+' and 'A-2'. This follows a review of the group's business prospects and financial plans. The outlook revision reflects Telekom Austria's sound operating performance, strengthened cash flow profile, and conservative financial policy. Telekom Austria's domestic operating performance remains sound. The group has stabilized its domestic voice market share and retains a significant market share in asymmetric digital subscriber lines (51.5%), despite competitive, regulatory, and technology pressures. The domestic mobile operation is also managing relatively well in a very competitive marketplace exposed to regulatory
