Standard&Poor's Ratings Services said today that the sale by France Telecom's mobile phone subsidiary, Orange S.A., of its 26.6% stake in Wind Telecomunicazioni SpA, Italy's second-largest telecommunications provider, does not fundamentally affect the credit profiles of France Telecom and Orange (both BBB-/Stable/A-3). The disposal is part of France Telecom's plan to deleverage and streamline its mobile business, and will generate €1.33 billion of cash proceeds, compared with the group's €68 billion unadjusted net debt at year-end 2002. Standard&Poor's views the transaction as positive evidence of France Telecom's commitment to cutting debt and continue to improve liquidity. The sale will contribute to the group's target of reducing debt by at least €15 billion through cash flow generation
