Leading telecommunications operator in Austria. Profitable and cash-generative international mobile operations. A transparent and moderately conservative financial policy. Solid free operating cash flow generation. Very competitive, mature, and regulated domestic marketplace. Limited flexibility to cut costs quickly because the majority of its employees in Austria 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 "satisfactory" business risk profile and "intermediate" financial risk profile. Telekom Austria's business risk profile is supported, in our view, by its sustainable leading market positions in the Republic of Austria (AA+/Negative/A-1+). Furthermore, the group's international mobile operations help diversify
