The ratings on Austrian telecommunications services provider Telekom Austria AG reflect the group's continuing leading market position in all main segments of the Austrian telecoms market. The ratings are also supported by the group's strengthening financial profile, thanks to the cash-generative characteristics of some of its growing international mobile operations; continued solid operating performance; and transparent and conservative financial policy. These factors are tempered by the fact that Austria's fixed-line and mobile telecommunications services markets are saturated and highly competitive. The ratings are further constrained by Telekom Austria's unrelenting expansion through acquisitions of mobile operations in markets of southeast Europe. Although Austria's telecoms market ranks among the most competitive within the EU, Telekom Austria's business risk profile has strengthened significantly
