The ratings on Deutsche Telekom AG (DTAG) and unit Deutsche Telekom International Finance B.V. were placed on CreditWatch with negative implications Feb. 27, 2001. The CreditWatch placement followed public comments made by DTAG's chief executive officer, Dr. Ron Sommer, that brought into question the company's ongoing commitment to deleverage in a timely manner. During the week ended Feb. 23, 2001, Dr. Sommer told a German newspaper that DTAG would not pursue an IPO of T-Mobile, DTAG's cellular communications subsidiary, unless the likely valuation of those cellular assets improved substantially. This statement was contrary to earlier statements made to Standard&Poor's, and inconsistent with the deleveraging assumptions currently factored into the rating of DTAG. Subsequent discussions with DTAG senior management
