On Nov. 18, 2003, Standard&Poor's Ratings Services lowered its long-term counterparty credit and senior unsecured debt ratings on France-based IT services and consulting group Cap Gemini S.A. to 'BBB' from 'BBB+', and removed the ratings from CreditWatch, where they had been placed Nov. 3, 2003. The outlook is negative. The downgrade followed a review of Cap Gemini's growth strategy, operating performance, and financial policies, and reflects Standard&Poor's concerns over the group's diminishing margins and sales base. The group's EBIT margin guidance of just 4% (before restructuring costs) for the second half is now expected to apply to a further reduced sales base, due to low bookings in September. In third-quarter 2003, Cap Gemini continued to experience
