Leading telecommunications operator in Austria. Profitable and cash-generative international mobile operations. Solid free operating cash flow generation. Moderately conservative and transparent financial policy. Very competitive, mature, and regulated domestic marketplace. Limited flexibility to cut costs quickly because the majority of Austrian employees are civil servants. High exposure to country risk, notably in Belarus. Meaningful competitive and regulatory pressure on international mobile operations. The ratings on Telekom Austria AG reflect Standard&Poor's Ratings Services' view of the group's sustainable, leading market positions in Austria. Telekom Austria's international mobile operations help diversify its revenue base and generate meaningful profit margins, which we consider likely to support the group's so far solid consolidated free operating cash flow (FOCF) generation. In addition, in
