Large scale and leading fixed-line and mobile telecommunications positions. Geographic diversification and growth prospects in emerging markets. Robust organic free operating cash flow generation. Prudent medium-term financial policy. Intense competitive and regulatory pressures. Heavy capital outlay requirements. Lack of labor cost flexibility in the French fixed-line operation. Some exposure to emerging markets' country and regulatory risks. The ratings on France Telecom S.A. (FT), one of the world's largest integrated telecommunications operators, reflect Standard&Poor's Ratings Services' assessment of FT's business risk profile as strong, underpinned by its solid positions in the French mobile and fixed-line telecoms markets; significant geographic diversification through a portfolio of leading mobile positions held across Europe, Africa, and the Middle East; ongoing efficiency initiatives and
