Fitch ups Alcatel ratings

Fitch Ratings said it upgraded Alcatel SA's senior unsecured rating to BB from BB- and changed its outlook to positive from stable.

The rating action reflects Alcatel's improving financial profile in recent quarters, the early signs of recovery in a number of Alcatel's markets and the strong liquidity maintained by the company, Fitch said. Alcatel is nearing the completion of its cost base restructuring, and with revenues streams starting to level out, the company is increasingly expected to be profitable both at an operating and net income level.

Alcatel, along with all the equipment manufacturers, has been through an extremely tough time over the past couple of years. Fitch said the company has done well, however, coming out of the recession in equipment spending with a much lighter cost base, a strong balance sheet and its technology leading positions in tact.

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