On July 27, 2005, Standard&Poor's Ratings Services affirmed its 'A-/A-2' corporate credit ratings on France-based telecommunications services provider France Telecom S.A. following the group's announcement today that it has reached an agreement to acquire 80% of Auna Operadora de Telecomunicaciones S.A. (Auna), the owner of 97.9% of Spain's third-largest mobile operator Retevision Moviles S.A. (Amena), for an implied enterprise value (on a 80% basis) of €8.5 billion. The outlook remains positive. The affirmation reflects the sound business rationale of the transaction in addition to the pro forma financial profile of France Telecom (FT) following the takeover, which will remain within the financial parameters required for the ratings. The acquisition of Amena has its merits from a business standpoint.
