Large scale and leading fixed-line and mobile telecommunications positions. 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-based credit metrics. The negative outlook on global telecoms operator Orange reflects the risk of a one-notch downgrade over the next 12 months if the group fails to stabilize its EBITDA in 2015-2016, in line with our base case, or if its key credit metrics deteriorate further. Orange's failure to significantly reduce the pace of
