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To: larry pollock who wrote (3808)	3/10/2002 11:09:15 AM
From: larry pollock	Respond to of 3891

Fitch: Stance On Deutsche Tel Cautious;Looking At Timing By: Richard Barley, Of DOW JONES NEWSWIRES LONDON (Dow Jones) Fitch Ratings' stance on Deutsche Telekom's A- rating is cautious, with the agency focusing on questions related to the timing of deleveraging events, an analyst at the agency told Dow Jones Newswires Friday. David Staples, head of European telecommunication, media and technology ratings at Fitch, said: "Fitch's stance is clearly cautious at present...We're assessing to what extent (deleveraging) targets might be missed due to timing differences, as opposed to the targets themselves no longer being achievable." Deutsche Telekom Chief Executive Ron Sommer said Friday that the likelihood of the company selling its cable assets to Liberty Media Corp. (L) as planned is " very slim." The deal faces antitrust hurdles, with the German Cartel Office due to rule on the transaction by Thursday. Sommer also said the company is preparing an Initial Public Offering for T- Mobile for this year, but didn't rule out a delay of the sale until 2003. Fitch Feb. 8 revised its outlook on Deutsche Telekom's rating to negative. Staples said Fitch is assessing the situation at Deutsche Telekom "very closely, in the light of recent market developments. The agency recognizes that Deutsche Telekom's management is now having to respond to factors that are beyond its control: Cartel Office approval, and equity market volatility for telecoms stocks in general and wireless stocks in particular." "Active discussions with management are continuing," he said. "At this stage it appears that we're dealing with timing differences; that is the key analytical issue to be determined," Staples said. Deutsche Telekom is rated A3 by Moody's Investors Service and A- by Standard & Poor's, both with negative outlooks. -By Richard Barley, Dow Jones Newswires; 44 20 7842 9314; richard.barley@ dowjones.com (This story was originally published by Dow Jones Newswires) Copyright (c) 2002 Dow Jones & Company, Inc.