The ratings on France-based Cap Gemini S.A. reflect the intensely competitive nature of the IT services industry, which results in low margins and frequent capacity adjustment costs. These factors are partially offset by Cap Gemini's broad and diversified capabilities in IT services--a relatively credit-friendly segment of the technology sector--and the company's conservative financial policies. Third-quarter 2006 revenues climbed 13.5% organically like for like, continuing the double-digit organic growth trend of the past few quarters. The outsourcing division, with revenues up 20%, was the strongest contributor to overall growth, reflecting gains in market share and the ramp-up of new contracts. Cap Gemini's operating margin before restructuring rose to 4.8% in first-half 2006, from 1.8% in first-half 2005. We expect further year-on-year
