Standard&Poor's said today that the announcement by France Telecom (BBB+/Negative/A-2) of the sale of 473 buildings to a consortium of investors has no effect on the group's ratings or outlook, although it views the transaction positively. While the group will, in a first phase, rent the buildings--thereby increasing operating costs--it has a clear strategy to rapidly vacate or sub-lease a substantial proportion, thereby releasing capital employed and decreasing its debt level. In addition, the relatively short-term maturity of most of the contracts limits the overall lease commitment. Future minimum payments for the leases associated with the transaction represent significantly less than the total proceeds of about €3 billion. The transaction therefore has a positive effect on the group's
