The rating on France-based IT services group Cap Gemini S.A. reflects the company's below-peer-average profitability and its ongoing restructuring challenges, which are partly offset by a prudent financial profile and policies. The company's revenue line is adjusting to a higher €1.8 billion base per quarter, up a strong 22% organically year-on-year, as new large outsourcing contracts closed in 2004 ramp up. Sequential growth was a more modest 2.2% in second quarter 2005. Cap Gemini's management team, is significantly refocusing the group's North American operations, including a €127 million ($164.6 million) restructuring charge, of which half will be cash. Restructuring includes severance and office rationalization, and was financed by the June disposal of the loss-making U.S. health care unit, for $175
