Large scale and leading fixed-line and mobile telecommunications positions. 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-based credit metrics. Our assessment of Orange's business risk profile as "strong" incorporates our view of the group's integrated business model in France, modern and extensive network infrastructure, extensive distribution networks, and leading market shares in its main domestic markets. It has meaningful diversity within its portfolio of foreign markets, and is the No.1 or
