The ratings on incumbent Germany-based telecommunications operator Deutsche Telekom AG (DTAG) reflect Standard&Poor's belief that the company will proceed with a partial IPO of T-Mobile, DTAG's cellular communications subsidiary. Discussions with DTAG since the closure of its acquisition of U.S.-based cellular company VoiceStream Wireless Corp. (VoiceStream) have provided no further clarification as to when the IPO of T-Mobile will take place. Standard&Poor's is now convinced, however, that such an IPO is part of DTAG's broader strategic plans, and is not simply an instrument for debt reduction. Standard&Poor's therefore believes that DTAG will, in the relatively near term, pursue an IPO of its mobile assets. A delay of the IPO beyond 2001 would leave DTAG
