Fitch affirms Telekomunikacja Polska

Fitch Ratings said it affirmed Telekomunikacja Polska SA's issuer default rating at BBB+ and short-term rating at F2. The ratings for its euro- and dollar-denominated bonds issued by Telekomunikacja Polska's finance subsidiaries - TPSA Finance BV, TPSA Eurofinance BV and TPSA Eurofinance France SA - also are affirmed at BBB+.

The outlook remains stable.

The ratings reflect the company's strong profitability and cash-flow generation, Fitch said, which are underpinned by its dominant position in fixed-line telecoms in Poland and the sustained expansion of its mobile business. The ratings also factor in the company's conservative financial policy, the agency said.

However, the agency said that in 2007, the company's revenue and profitability will come under pressure from the implementation of several new wholesale tariffs. Fitch also said it expects the pace of the mobile business expansion to abate in 2007 and new operators could partially offset further growth in the customer base and usage.

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