www.telekom.si/o-pod...202015.pdf


- Adequate credit metrics, although pressures could arise if operating performance weakens and the company continues with its generous shareholder remuneration policies


__

What Could Change the Rating - Down

The rating could come under further downward pressure if (1) Telekom Slovenije's liquidity profile deteriorates
significantly as a result of the company facing alternative back-up liquidity constraints, or being unable to access
the deposits placed with domestic banks in a timely manner; (2) refinancing risk for the 2016 bond maturity
increases; or (3) the company's financial flexibility otherwise weakens.
Telekom Slovenije's ratings could also come under downward pressure if (1) the company's underlying operating
performance were to weaken beyond current expectations as a result of macroeconomic or other considerations;
or (2) the company were to make large extraordinary shareholder distributions, or material debt-financed
acquisitions, investments or cash calls as a result of litigation such that its credit metrics deteriorated (including
adjusted retained cash flow (RCF)/debt sustainably below 25% and adjusted debt/EBITDA towards 2.5x).
A deterioration in the creditworthiness of the sovereign could have a negative effect on the rating of Telekom
Slovenije. Finally, we could downgrade Telekom Slovenije's rating if the company is acquired by an entity with a
weaker credit profile or its balance sheet is loaded with a material amount of debt to support such an acquisition.