Anchor determination: We use a 'bbb-' anchor for Telekom Austria, the higher of two possible outcomes, to reflect the group's entrenched competitive position in Austria. Leading telecommunications operator in Austria, supported by strong spectrum holdings. Profitable and cash-generative international mobile operations. High competitive pressure in many service areas. High exposure to country risk, especially in Belarus. Rigid cost structure in Austria. Significant leverage. Free operating cash flow generation constrained by large network investments and restructuring costs. Marked foreign exchange exposure of cash flows from international operations in Belarus, Serbia, and Macedonia. The CreditWatch status reflects an upcoming change of ownership for Telekom Austria: Its 26.8% shareholder, América Móvil S.A.B. de C.V. (AMX; A-/Stable/--; CaVal (Mexico) national scale mxAAA/Stable/mxA-1+), has entered
