In our opinion, French telecom operator Orange may have difficulty stabilizing its EBITDA by 2015-2016, in light of a fiercely competitive home market and overall low benefits from diversification in other markets. Orange's credit metrics continued to deteriorate in 2013 and future discretionary cash flows after dividends will be modest. We are revising the outlook on Orange to negative from stable and affirming the ratings at 'BBB+/A-2'. The negative outlook reflects the risk of a one-notch downgrade within two years if Orange fails to stabilize its EBITDA and restore somewhat stronger credit metrics. On Jan. 20, 2014, Standard&Poor's Ratings Services revised to negative from stable its outlook on Orange, one of the world's largest integrated telecommunications operators. At
