The ratings on Telekom Austria AG reflect the group's sustainable leading market position in all main segments of the Austrian telecommunications market, a solid financial profile supported by the cash-generative characteristics of its growing and well established international mobile operations, solid discretionary cash flow generation, and a transparent and conservative financial policy. These factors are tempered by the saturation of, and fierce competition in Austria's declining fixed-line and mobile telecommunications services market. The group has a rigid cost structure due to the high portion of civil servants in Austria. Furthermore, it has an increasing emerging markets exposure. At first glance, Telekom Austria posted solid results in the first nine months of 2008, with year-on-year revenue and EBITDA growth of 6.4%
