Standard&Poor's lowered its long-term corporate credit rating on France Telecom (FT) and majority owned wireless subsidiary Orange S.A. to triple-'B'-minus from triple-'B' on July 12, 2002, reflecting its belief that it will be difficult through 2003 for FT to deleverage its balance sheet to levels acceptable for the previous 'BBB' rating. This conclusion also followed an analysis of the company's liquidity position through the end of 2003, and a review of the French state's potential involvement in the French telecom incumbent. The long-term ratings on both companies were removed from CreditWatch, where they had been placed on March 28, 2002; the outlooks are stable. At the same time, Standard&Poor's affirmed its 'A-3' short-term corporate credit rating
