The ratings on Germany's largest telecommunications services provider Deutsche Telekom AG (DT) primarily reflect the group's large and diversified operations across a number of markets. DT has strong fixed-mobile integrated operations in Germany and a portfolio of mobile operations across Western Europe and South and Eastern Europe (SEE) and the U.S. This results in strong underlying cash flow generation for the group. In addition, it operates a measured financial policy that includes guidance for net debt to EBITDA in the 2.0x-2.5x range (after DT's adjustments). However, given Standard&Poor's Ratings Services' sizable 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
