PARIS, April 22 (Reuters) - Standard & Poor’s cut its long-term and issue ratings for France Telecom to BBB+ from A-, with a stable outlook, citing stiff mobile competition and a sharper expected drop in full-year core profit.
“We think competitive and price pressures in France Telecom’s domestic mobile market will remain stiff in the next two years,” the ratings agency said in a statement on Monday.
“Group EBITDA (earnings before interest, tax, depreciation and amortisation) in 2013 will likely drop more sharply than we had previously assumed, and the restoration of stronger credit metrics by 2014 will consequently fall short of our previous expectations.”
S&P affirmed its A-2 short-term rating on France Telecom debt. (Reporting by James Regan; Editing by Christian Plumb)