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Deutsche Telekom AG - Interim Group report - January 1 to September 30, 2011

48 The general mood on the international financial markets in recent months was dominated by the international debt crisis, which causes difficulties for some countries to refinance their due debts on the international capital markets. Over the coming months, the performance of the financial markets is expected to depend largely on the implementation of suitable measures to tackle the debt crisis. The major Western industrialized countries will see their economic development slow down markedly in the coming months. While the emerging markets continue to record buoyant demand, this upward trend will lose further momentum. Overshadowed by the ongoing debt crisis and the possibility of a new banking crisis, the forecasts for the global economy’s future develop- ment fluctuate widely. Governments, international organizations and economic researchers downgraded their forecasts in the course of 2011 considerably. The German government, for example, recently cut its economic forecast for Germany for 2012 from 1.8 percent to 1.0 percent. The OECD cut its forecast for 2012 for economic development in the euro zone from plus 2.0 percent to just plus 0.3 percent. At the beginning of April 2011, Deutsche Telekom issued a five-year bond with a volume of USD 1.25 billion through its financing arm Deutsche Telekom International Finance B.V. We expect the financial markets to remain open to Deutsche Telekom for any further financing measures in 2011. As of September 30, 2011, we had a comfortable liquidity reserve of EUR 12.7 billion. We also plan to maintain a liquidity reserve during the remainder of 2011 at a level that enables us to meet all maturities in the next 24 months. As of September 30, 2011, the rating agencies Fitch, Moody’s, and Standard & Poor’s rated us as a solid investment-grade company at BBB+/Baa1/BBB+. All three agencies upgraded their outlook for our rating following the announce- ment of the sale of T-Mobile USA. Fitch and S&P both increased their outlook from stable to positive, while Moody’s put our rating on a watchlist pending a possible upgrade. In order to retain secure access to the international financial markets in the future, a solid investment-grade rating also remains part of our financial strategy. As the parent company of the Group, Deutsche Telekom AG continues to expect positive income after taxes for 2011 and 2012.