On Dec. 5, 2002, Standard&Poor's Ratings Services affirmed its 'BBB-' long-term and 'A-3' short-term corporate credit ratings on French telecommunications provider France Telecom S.A. (FT). The outlook is stable. The affirmation follows today's announcement by the group's new management of a radical plan to boost free cash flow generation and of a very substantial capital increase scheduled for 2003. Since July 2002, Standard&Poor's has indicated that expected support from FT's 56% shareholder, the French state, is a key rating factor, underpinning the group's investment-grade status. The French state's announcement today that it will immediately grant a €9 billion shareholder loan to help FT face its 2003 debt obligations is viewed by Standard&Poor's as strong
