The ratings on France Telecom S.A. reflect the group's weak debt-coverage measures following its acquisitions over the past two years and payments for third-generation (3G) mobile-telephony licenses. The company's solid business fundamentals, notably in its domestic market, continue to provide the primary credit support. France Telecom has indefinitely postponed the sale of about 100 million treasury shares, mainly owing to adverse market sentiment toward telecommunications stocks. This issue had been a fundamental element in a scheme to deleverage the group's balance sheet and reduce debt, which stood at €64.9 billion at end-June 2001. In addition, the market value of certain noncore France Telecom assets has continued to decline very significantly over the past six months, further impairing the group's ability
