Telco Chatter

Research evidence excerpt

Telco Chatter

Akhil Dattani AC Europe Equity Research

(44-20) 7134-4725 23 June 2026 J P M O R G A N

akhil.dattani@jpmorgan.com

DT – Fitch upgrades credit rating to A- with stable outlook

Fitch has upgraded DT’s Long-Term Issuer Default Rating (IDR) and senior unsecured

rating to A- from BBB+ and assigned a stable outlook. Fitch said DT’s credit profile

benefits from improving credit quality at TMUS, which accounted for about two-thirds of

group adjusted EBITDA in 2025. Fitch noted it revised the outlook on TMUS’s BBB+ IDR

to positive in May 2026, citing strong operating momentum and improved FCF generation.

Fitch expects leverage to remain close to the mid-2x area over the next few years despite

higher shareholder returns and investments. The rating agency said DT’s stake in TMUS

rising above the controlling level improves financial flexibility and noted DT does not

intend to participate in TMUS share buybacks in 2026, which could lift its stake above 54%

by end-2026 from 53.8% as of April. Fitch added any ownership above the controlling level

could be available for divestment if needed. The rating agency said strong cash generation

at TMUS is resulting in a substantial amount of unallocated cash and cited an estimate that

more than $22bn of the remaining $50bn capital allocation envelope through 2027 was

available for growth investments, deleveraging and additional shareholder remuneration, on

top of up to $30bn earmarked for shareholder returns. (Source: Fitch Ratings)

Eutelsat – Signs multi-year LEO connectivity deal with AST Networks

Eutelsat has signed a multi-year agreement to provide low-earth orbit (LEO) connectivity

services to AST Networks. The contract is valued in the multi-million-dollar range and

expands the companies’ existing partnership.