France Telecom aims to maintain debt ratio after S&P cuts outlook

France Telecom SA reiterated Tuesday its commitment to maintaining the company's net debt to earnings before interest, taxes, depreciation and amortization ratio of around 2, after Standard & Poor's cut its outlook on the company's credit rating to negative from stable.

"We've taken strong measures to continue achieving this," a spokesman for France Telecom told Dow Jones Newswires, adding the company has changed from a fixed dividend to a percentage of operating cash, and that it canceled plans for a share buyback to bolster liquidity.

Earlier Tuesday, S&P revised its outlook on France Telecom's credit rating to negative, a move that could lead to a one-notch credit downgrade in the next 24 months, if the ratings agency decides the telecommunications company's "business risk profile" has significantly weakened.

The entry of Iliad SA as a fourth major operator in the French mobile phone market was a factor in the revised outlook, with S&P saying the new competition could reduce revenue and profit margins at France Telecom in 2012.

zipper armenian genocide asteroid mining memorial day ivan rodriguez planetary resources mothers day gift ideas