On Sept. 12, 2006, Standard&Poor's Ratings Services revised to positive from stable its outlook on France-based IT services provider Cap Gemini S.A., as the group has demonstrated ongoing improvements in its margins and free cash flow generation, recent gains in market share, and significantly better financial controls. At the same time, the 'BB+' long-term corporate credit and senior unsecured debt ratings were affirmed. At June 30, 2006, Cap Gemini reported consolidated gross on-balance-sheet debt of €1.2 billion. The company posted a 4.8% operating margin before restructuring in first-half 2006, up from 1.8% in first-half 2005. Attrition and pricing pressure have remained manageable for Cap Gemini. Ongoing cost reduction initiatives continue to hamper profitability--the first-half 2006 margin post restructuring
