Large scale and leading market positions in fixed-line and mobile telecommunications. Geographic diversification and growth prospects in emerging markets. Very high capital intensity, fragmentation and pricing pressures in the industry. Intense competition in the French market. Lack of labor cost flexibility in the French fixed-line operation. Some exposure to emerging markets' country and regulatory risks. Moderate financial and shareholder policies. Solid liquidity management track record. Weak cash-flow metrics, partly owing to the sector's capital intensity. The negative outlook reflects the risk of a one-notch downgrade in the next two years if we became increasingly convinced that the group would fail to stabilize its EBITDA in 2015-2016 or if its key credit metrics deteriorated further. Failure to significantly reduce the pace
