MILAN, Italy-Ratings agency Standard & Poor’s raised its long- and short-term corporate credit ratings on France Telecom S.A. to BBB from BBB- and A-2 from A-3. It also raised its long-term corporate credit rating on Orange S.A., France Telecom’s mobile subsidiary, to BBB from BBB-.
The new ratings are a positive sign for the French company, which has been struggling under a high debt load for months.
“The ratings on FT take into account the group’s substantially improved credit measures, primarily the result of its April 2003 rights issue and of certain asset disposals made in the first quarter of 2003,” said Guy Deslondes, a credit analyst in Standard & Poor’s Milan office.
Deutsche Telekom, another heavily indebted European operator, also announced positive news this week, posting its first profit in nearly two years for the first quarter of 2003. The operator announced a net profit of $972 million in the quarter, due in part to strong earnings from its T-Mobile International AG wireless subsidiary.
