The ratings on Germany's largest telecommunications services provider Deutsche Telekom AG (DT) primarily reflect the group's strong business positions across a number of markets 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 in particular by growth at its U.S.-based wireless subsidiary T-Mobile USA Inc. DT retains good growth prospects in its U.S.-based mobile business due to the favorable demographics of the U.S. mobile market and strategic clarity regarding its U.S. presence. In addition, management has a track record of a measured financial policy, which we
