Our 'BBB+' rating on Orange is derived from our anchor of 'bbb+', based on our "strong" business risk and "intermediate" financial risk profile assessments for the company. Our assessment of the modifiers and the likelihood of government support had no impact on the rating outcome. Large scale and leading market positions in fixed-line and mobile telecommunications. Geographic diversification and growth prospects in emerging markets. Very high capital intensity, fragmentation and pricing pressures in the industry. Intense competition in the French market. Lack of labor cost flexibility in the French fixed-line operation. Some exposure to emerging markets' country and regulatory risks. Moderate financial and shareholder policies. Solid liquidity management track record. Weak cash-flow metrics, partly owing to the sector's capital intensity.
