LONDON -- Standard & Poor's Ratings Services said it assigned its 'BBB+ long-term senior unsecured debt rating to France Telecom S.A.'s (BBB+/Positive/A-2) new €10 billion ($12 billion) five-year revolving credit facility.

"The new €10 billion revolving credit facility has been rated at the same level as the long-term corporate credit ratings on France Telecom, reflecting the unsecured nature of the liabilities and the lack of material subordination issues," said Standard & Poor's credit analyst Leandro de Torres Zabala.

The facility will be used for refinancing existing debt as well as working capital and general corporate purposes. Pricing for the new facility will move in line with any changes to the corporate credit rating on France Telecom. Nonfinancial covenants include a negative pledge with carve outs, as well as restrictions on material subsidiary indebtedness and disposals. There are no financial covenants.

Compared with the €5 billion credit facility rated in February 2003, the documentation has seen some changes. These include more tightly defined events of default, including the removal of material adverse change as an event of default. Furthermore, the loan agreement is now governed by French law.

France Telecom SA

Standard & Poor’s