Moody's: Deutsche Telekom on review for upgrade

Moody's Investors Service said it has placed Deutsche Telekom AG's - and its guaranteed subsidiary Deutsche Telekom Finance BV's - Baa3 senior long-term debt ratings and its Prime-3 short-term rating under review for possible upgrade.

At the same time, Moody's placed VoiceStream Wireless Corp.'s, the US-based wireless operator owned by Deutsche Telekom (also known as T-Mobile USA) Ba3 long-term ratings on review for possible upgrade.

Moody's said the review recognizes the continued improvement in operating performance both at Deutsche Telekom and T-Mobile USA and the progress made by the group in reducing financial leverage, and will focus on the sustainability of these efforts and on the company's future investment plans.

Moody's acknowledged Deutsche Telekom's successful execution of its deleveraging program, and said it expects that Deutsche Telekom's total adjusted net debt, allowing for such items as underfunded non-state pension liability, operating lease adjustments and other off-balance sheet liabilities, should fall by circa €11.8 billion to about €66 billion by year-end 2003, compared to year-end 2002.

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