Moody's ups T-Mobile

Moody's Investors Service upgraded the senior unsecured rating of T-Mobile USA to Ba2 from Ba3.

The outlook is positive.

According to Moody's, the upgrade takes into consideration the improved credit metrics of the company on a stand-alone basis, which have allowed the company to generate a positive adjusted retained cash flow during 2003, T-Mobile USA's gradually improving market position as the company continues to gain a higher proportion of net additions vs. its current market share and parental support, which has been demonstrated by Deutsche Telekom's tender offer during 2003 for the outstanding public bonds of T-Mobile USA.

Moody's also noted that T-Mobile USA has agreed to acquire for cash the network assets from Cingular Wireless as a result of the dissolution of a joint venture agreement between the two companies resulting from the potential acquisition of AT&T Wireless by Cingular Wireless.

In addition, Deutsche Telekom, the parent company, has stated publicly that T-Mobile USA may acquire additional network assets, which may absorb some of the company's financial flexibility.

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