Deutsche Telekom goes from bad to worse

$4.8bn cable sale falls through and now ratings agencies gather ominously...

A bad week for Deutsche Telekom looks like getting worse with news that it is likely to be downgraded by ratings agencies who are concerned over the level of its debts. The company's efforts to lower the summit of its debt mountain took a severe blow on Monday when the German regulator blocked the $4.8bn sale of its cable assets to US firm Liberty Media. Now ratings agencies Standard & Poor's and Moody's have warned they are reviewing its credit status, which given the events of the week would most likely mean a downgrading of its rating is on the cards.