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+
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 by EUR 2.4 billion compared with the end of 2015.
  • The acquisition of mobile spectrum (EUR 2.7 billion), dividend payments (EUR 1.6 billion), payments to external pension funds (allocation under contractual trust agreement: EUR 0.3 billion),  exchange rate effects (EUR 0.8 billion), and a large number of other effects increased net debt.
  • Free cash flow (EUR 4.9 billion), in particular reduced net debt.

More information on net debt and how it has developed please refer to the annual report (pdf, 2.9 MB) as of Dec 31,2016 on page 21.

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 Dec 31, 2016 the liquidity reserve amounts to EUR 20.2 billion.

For more information on the liquidity reserve, please refer to the current Q4 2016 Backup (pdf, 1.1 MB) on page 19.

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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Your Contact

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

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Investor Relations

Deutsche Telekom

Phone: +49 228 181‐88880

Fax: +49 228 181‐88899



Friedrich-Ebert-Allee 140, 53113 Bonn

Picture Markus Schäfer

Markus Schäfer

Vice President Debt Capital Markets

Phone: +49 228 181‐84255





Friedrich-Ebert-Allee 140, 53113 Bonn

Picture Christoph Lüttig

Christoph Lüttig

Senior Expert Debt Capital Markets

Phone: +49 228 181‐87062




Friedrich-Ebert-Allee 140, 53113 Bonn