On Feb. 10, 2005, following publication of France Telecom S.A.'s (FT) 2004 results, Standard&Poor's Ratings Services raised its long-term corporate credit rating on France's dominant telecommunications services provider to 'A-' from 'BBB+'. At the same time, FT's short-term corporate credit rating was affirmed at 'A-2'. The outlook remains positive. The upgrade to the lower end of the 'A' category reflects FT's continued deleveraging in 2004, in line with management's previous guidance, on the back of strong operating performance and a conservative financial policy. Additional upside cannot be ruled out in the medium term, provided FT not only maintains solid domestic market positions and results, and further progresses in its 2005 deleveraging plan, but also subsequently maintains a conservative
