France Telecom Debt Rating Cut by S&P as Mobile Bills Shrink
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France Telecom SA had its debt rating cut one step by Standard & Poor’s, which cited pricing pressure in the French wireless market and a bigger-than-anticipated decline in earnings this year.
The long-term rating was reduced to BBB+, the third-lowest investment grade, while the outlook is stable, S&P said in a statement today. Moody’s Investors Service, which ranks the debt one step higher at A3, said April 10 it may cut its rating. France Telecom reported net debt of 30.5 billion euros ($39.7 billion) as of the end of 2012.