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" and its financial risk profile as "intermediate," as our criteria define the terms. FT's business risk profile is underpinned by its solid positions in the French mobile and fixed-line telecoms markets, significant geographic diversification through
