Leading market position and solid margins in Germany, a mature but stable service area. Diverse footprint of fixed and mobile operations across Europe, mostly with leading market positions. Strong operating trends and improving market position of T-Mobile U.S. (TMUS). Competitive pressure on revenues in some services areas, mitigated by continued significant cost-cutting. TMUS' moderate scale, which will likely result in competitive hurdles in the U.S. market in the long term. High S&P Global Ratings'-adjusted financial leverage for the current rating level. Clearly defined and predictable financial policy. Free operating cash flow (FOCF) constrained in the near term by expected high spectrum costs in the U.S., high restructuring costs, and substantial capital spending for network investments in Germany and other European
