The ratings on Germany's largest telecommunications services provider Deutsche Telekom AG (DT) primarily reflect the group's solid business position in a number of markets. DT's operations constitute a diversified base of strong underlying cash flow generation, with a weighting toward Germany and the U.S. The ratings benefit from DT's continuing substantial market position in Germany. In addition, the group operates a measured financial policy that includes leverage guidance in the range 2.0x-2.5x reported net debt–to-EBITDA. However, given our debt adjustments, leverage at the higher end of this scale would not be commensurate with the current ratings on DT. The ratings are constrained by the group's credit metrics, which are weak for the 'BBB+' rating. We consider the group's lease- and
