Prospectus-Final (clean) - Malta Financial Services Authority

Risk FactorsProspective investors should consider all information provided in this Prospectus and theReference Documents and consult with their own professional advisers if they consider itnecessary. In addition, investors should be aware that the risks described may combine andthus accumulate.Certain of the Dealers and their affiliates have engaged, and may in the future engage, ininvestment banking and/or commercial banking transactions with, and may perform servicesfor, the Issuer and its affiliates in the ordinary course of business.Risk Factors regarding the IssuersThe following is a disclosure of risk factors that are material to each Issuer and that may affecteach Issuer's ability to fulfill its obligations under the Notes or the Guarantee, as the case maybe. Prospective investors should consider these risk factors before deciding to purchaseNotes issued under the Programme.Risk Factors in respect of Deutsche TelekomThe risk related to Deutsche Telekom AG's ability to fulfill its obligations as Issuer of debt securities isdescribed by reference to the ratings assigned to Deutsche Telekom AG. Deutsche Telekom AG israted by Fitch Ratings CIS Limited ("Fitch") 1 , Moody's Investors Service España SA ("Moody's") 2 andby Standard & Poor's Credit Market Services Europe Limited ("S&P" 3 , 4 together with Fitch andMoody's, the "Rating Agencies").As of the publication date of the Prospectus, the ratings assigned to Deutsche Telekom by the RatingAgencies were as follows:by Fitch: long-term rating: BBB+short-term rating:F2Fitch defines 1 :BBB: "BBB" ratings indicate that expectations of default risk are currently low. The capacity forpayment of financial commitments is considered adequate but adverse business or economicconditions are more likely to impair this capacity.F2: Indicates satisfactory capacity for timely payment of financial commitments.by Moody's: long-term rating: Baa1short-term rating: P-21234Fitch is established in the European Community and is registered under Regulation (EC) No 1060/2009 of the EuropeanParliament and of the Council of 16 September 2009 on credit rating agencies, amended by Regulation (EC) No 513/2011of the European Parliament and of the Council of 11 March 2011 (the"CRA Regulation").Moody's is established in the European Community and is registered under Regulation (EC) No 1060/2009 of theEuropean Parliament and of the Council of 16 September 2009 on credit rating agencies amended by Regulation (EC) No513/2011 of the European Parliament and of the Council of 11 March 2011 (the"CRA Regulation").S&P is established in the European Community and is registered under Regulation (EC) No 1060/2009 of the EuropeanParliament and of the Council of 16 September 2009 on credit rating agencies amended by Regulation (EC) No 513/2011of the European Parliament and of the Council of 11 March 2011 (the"CRA Regulation").The European Securities and Markets Authority publishes on its website (www.esma.europa.eu) a list of credit ratingagencies registered in accordance with the CRA Regulation. That list is updated within five working days following theadoption of a decision under Article 16, 17 or 20 CRA Regulation. The European Commission shall publish that updatedlist in the Official Journal of the European Union within 30 days following such update.27