Fitch Ratings has affirmed Orange's long-term issuer default rating and senior unsecured rating at 'BBB+'. The outlook is stable.
Fitch said Orange's rating was underpinned by the telecom group's strong domestic position in France, which represented 59% of adjusted EBITDA minus capex at end-2016.
And Fitch said a convergence-based strategy across Orange's main European operations was successfully improving revenue trends, which combined with cost reductions, is leading to improvements in underlying EBITDA.
It added: 'Orange's leverage is comfortably within the 'BBB+' rating, providing financial flexibility to manage operational risks and investments.
'However, ongoing capex for broadband networks will continue to restrain cashflow generation and organic deleveraging capacity over the next two to three years.'