Leading operator in the main Austrian telecommunications segments Very profitable and cash-generative international mobile operations Solid operating profitability and strong free operating cash flow generation Conservative balance sheet and transparent financial policy Very competitive, mature, and regulated domestic marketplace High portion of civil servants in Austria limits flexibility to cut costs Plans to continue expanding in Eastern and Southeast Europe Relatively high portion of short-term debt at present The ratings on Telekom Austria AG reflect the group's ongoing leading market position in all main segments of the Austrian telecommunications market, a strong financial profile supported by the cash-generative characteristics of its growing international mobile operations, continued solid operating performance, and a transparent and conservative financial policy. These factors are tempered
