The ratings on Germany's largest telecommunications services provider Deutsche Telekom AG (DT) primarily reflect the group's strong business positions and underlying solid financial performance in its core domestic fixed-line telephony market, assisted by the uptake of broadband in Germany. The ratings are also supported by the business and operating progress and growing operational cash flows achieved by DT's mobile telephony unit, helped by growth performance at U.S.-based wireless subsidiary T-Mobile USA Inc. In 2004, DT improved its credit ratios, delivered suitably strong cash flow generation, and accumulated enough financial flexibility for the rating level. DT reduced reported on-balance-sheet net debt under IFRS to €39.6 billion ($54.0 billion) in 2004, from €50.7 billion at year-end 2003, but this debt reduction trend
