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, 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; ongoing efficiency initiatives and measures to adapt to competition and rapidly evolving demand patterns, as well as the telecom industry's moderate cyclicality. These strengths will likely continue to allow consistent generation of strong free operating cash flow (FOCF) in the future. They are tempered, however, by fierce and further increasing competition in its domestic market, regulatory pressures, some cost rigidities
