The ratings on Austrian telecommunications services provider Telekom Austria AG reflect the group's leading market position in all main segments of the Austrian telecoms market, continued solid operating performance, and a conservatively leveraged balance sheet. These factors are tempered by the fact that Austria's (AAA/Stable/A-1+) fixed-line and mobile telephony services markets are saturated and highly competitive, the group's dynamic shareholder return and acquisition policies, and its unrelenting expansion through acquisitions of mobile operations in southeastern Europe. Although Austria's telecoms market ranks among the most competitive within the EU, Telekom Austria's business risk profile has strengthened over the past few years. Specifically, the group has a strong track record in defending its leading market positions and performance was solid in 2004,
