The ratings on France Telecom S.A. (FT), one of the world's largest integrated telecommunications operators, reflect Standard&Poor's Ratings Services' assessment of FT's business risk profile as "strong" and its financial risk profile as "intermediate," as our criteria define the terms. FT's business risk profile is underpinned by its solid positions in the French mobile and fixed-line telecoms markets, significant geographic diversification through a portfolio of leading mobile positions held across Europe, Africa, and the Middle East, and the telecom industry's moderate cyclicality. These strengths will likely continue to allow generation of strong free operating cash flow (FOCF) in the future, in our view. They are tempered, however, by fierce competition in its domestic market, regulatory pressures, some cost
