Debt capital strategy

The strategy of Deutsche Telekom is covered by a financial strategy with three key core points: 

  • Attractive dividend policy for shareholders
  • Security for investors
  • Increase of the company value ( ROCE)

Having undisputed access to the debt capital markets at all times is the core objective of Deutsche Telekom's debt capital strategy.

Please click on the terms below for further details about the cornerstones of our debt strategy:

In order to ensure unhindered access to the debt capital market at all times, Deutsche Telekom has set the following target corridor for its finance strategy: Credit ratings are to be in the solid investment grade, i.e., not over A- and not under BBB.

Deutsche Telekom's current ratings correspond to these requirements:

Moody'sS & PFitch
Long-term rating Baa1BBB+BBB+
OutlookStableStableStable
Short-term ratingP-2A-2F2
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Compared with most competitors in the telecommunications industry, the development of Deutsche Telekom's rating has been stable over the last few years. more

Net debt is an important key performance indicator for investors, analysts and rating agencies. It is one of the Group's key management ratios, especially as a component of relative financial ratios such as net debt/ EBITDA, and fundamental information for the international financial markets. The main factors influencing this change are given in the overview below.

  • Net debt increased from EUR 50.0 billion at the end of 2016 to EUR 55.2 billion.

The increase was attributable to the spectrum acquisition (EUR 7.3 billion) and the dividend payments – including to non-controlling interests – (EUR 1.5 billion), which were only partially offset by the positive effects from free cash flow (EUR 2.5 billion) and the sale of Strato (EUR 0.6 billion) and further shares in Scout24 AG (EUR 0.3 billion). Exchange rate effects of EUR 1.7 billion also had a positive effect.

More information on net debt and how it has developed please refer to the interim report as of June 30 (pdf, 663.6 KB), 2017 on page 13.

One of the guidelines for our financial policies defines an equity ratio corridor of between 25 and 35 percent. Fixing of the equity ratio in this interval helps on the one hand to optimize risk for all equity and liabilities and on the other hand to increase the return on equity. The limiting factor for the level of debt is a defined ratio of net debt to EBITDA of between 2.0 and 2.5.

Deutsche Telekom ensures the solvency and financial flexibility of the Group at all times by means of an adequate liquidity reserve. Credit lines and cash are assessed as covering the maturities of bonds and loans of the next 24 months. As of June 30, 2017 the liquidity reserve amounts to EUR 12.6 billion.
For more information on the liquidity reserve, please refer to page 20 of the current Q2/2017 Backup (pdf, 1.7 MB).

T-Mobile US in the United States and OTE in Greece have the explicit brief to be able to finance themselves independently on the international debt capital markets. Both subsidiaries therefore have an independent rating and independent  contact.


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You have questions about the Telekom Share, financial reports or similar topics? Contact us!

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Investor Relations

Deutsche Telekom

investor.relations@telekom.de

Phone: +49 228 181‐88880

Fax: +49 228 181‐88899

investor.relations@telekom.de

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Friedrich-Ebert-Allee 140, 53113 Bonn

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Markus Schäfer

Vice President Debt Capital Markets

markus.schaefer01@telekom.de

Phone: +49 228 181‐84255

markus.schaefer01@telekom.de

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Friedrich-Ebert-Allee 140, 53113 Bonn

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Christoph Lüttig

Senior Expert Debt Capital Markets

luettig.christoph@telekom.de

Phone: +49 228 181‐87062

luettig.christoph@telekom.de

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Friedrich-Ebert-Allee 140, 53113 Bonn

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