France Télécom's downgrade by Fitch - the latest in what seems to be a never-ending series by the biggest rating agencies - comes at a time when the French company and some of its competitors are preparing asset-backed bond issues.

Fitch dropped France Télécom by one notch to A- and has maintained a negative outlook on the company. The negative outlook implies that the next rating move will be downwards. It was put in place when France Télécom floated Orange, its mobile phone subsidiary, in February this year.