MILAN -- Standard & Poor's Ratings Services said today that it has affirmed its 'BBB+' long-term and 'A-2' short-term corporate credit ratings on Germany's dominant telecommunications services provider Deutsche Telekom A.G. (DT). At the same time, the long-term rating was removed from Creditwatch, where it had been placed on March 10, 2004. The outlook is now positive.

The affirmation, which follows a review of the group's medium-term business and financial strategies, reflects the fact that DT's credit profile and financial policy remain, for now, commensurate with a 'BBB+' rating.

"At the same time, we acknowledge the likelihood of continued steady improvement in DT's credit measures in the near term, on the back of substantial excess free cash flow generation," said Standard & Poor's Milan-based credit analyst Guy Deslondes.

Deutsche Telekom AG

Standard & Poor’s