S&P downgrades Deutsche Telekom

S&P said it downgraded to BBB from BBB+ the ratings of Deutsche Telekom AG’s, its subsidiary Deutsche Telekom International Finance BV and their issue ratings. S&P removed the ratings from CreditWatch with negative implications.

“The downgrade reflects DT's weaker credit metrics following the Sprint acquisition, with only modest near-term improvements. The higher overall leverage stems from the higher leverage at Sprint, as well as heavy integration costs of about $15-$16 billion over several years,” said S&P in a press release.

The outlook is stable.

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