The ratings on France-based IT consulting and service company Cap Gemini S.A. reflect Standard&Poor's Ratings Services' view of the group's financial risk profile as "intermediate" mainly owing to a sound balance sheet and a conservative financial policy. The ratings also reflect the group's business risk profile, which we view as "satisfactory" considering the group's broad and diversified capabilities in IT services, solid offshore base, and adequate cost control. Partially offsetting these factors is the cyclical and intensely competitive nature of the IT services industry, which results in low margins, frequent capacity adjustment costs, and large intra-year working capital needs. Cap Gemini reported revenues up 12.9% year-on-year in the first six months of 2011, translating into 7.4% organic revenue
