Fitch: Ericsson outlook stable

Fitch Ratings said it changed the outlook on Telefonaktiebolaget LM Ericsson's senior unsecured rating to stable from negative and affirmed the rating at BB-.

Fitch said the outlook change reflects Ericsson's solid improvement in financial performance in 2003, the degree to which costs have been reduced, the company's sound liquidity and the early signs of stabilization in its trading environment.

The rating reflects the extremely difficult revenue conditions the company has experienced over the past three years, which have resulted in significant losses and a wholesale restructuring of its cost base. Ericsson, nevertheless, is the leader in the supply of mobile network infrastructure with about 30% of the market (including a 40% share of GSM networks). Given that the market for mobile networks may be starting to stabilize, the agency believes Ericsson's cost cutting leaves it in a good position to benefit from any improvement in the trading environment.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.