The ratings on Telekom Austria AG reflect the group's continuing leading market position in all main segments of the Austrian telecommunications market, a strong financial profile supported by the cash-generative characteristics of some of its growing international mobile operations, continued solid operating performance, and a transparent and conservative financial policy. These factors are tempered by the saturation of, and high competition in, Austria's fixed-line and mobile telecommunications services markets, and the group's ongoing expansion through acquisition of mobile operations in southeast Europe. Although Austria's telecoms market is one of the most competitive in the EU, Telekom Austria's business risk profile has strengthened significantly in recent years. Specifically, the group has stabilized its performance in the wireline operations despite strong competitive,
