On Feb. 18, 2004, Standard&Poor's Ratings Services raised its long-term corporate credit ratings on France's dominant telecommunications service provider France Telecom S.A. (FT) and FT's mobile telephony subsidiary Orange S.A. to 'BBB+' from 'BBB'. At the same time, the 'A-2' short-term corporate credit rating on FT was affirmed. The outlook on both companies remains positive. The upgrade follows a review of FT's 2003 operating performance and deleveraging expectations for 2004 and 2005. It primarily reflects the group's rapid improvement in credit metrics on the back of markedly stronger, sustainable cash flow generation, as well as a predictable financial policy through year-end 2005. Since year-end 2002, FT has reduced its on-balance-sheet net debt by about €23.8 billion, to €44.2
