Moody's: Ericsson outlook positive

Moody's Investors Service said it changed to positive from negative the outlook on the ratings of Telefonaktiebolaget LM Ericsson and affirmed all ratings at B1/Not-Prime.

Moody's said the outlook change reflects improvement in core quarterly revenues as indicated by the company's strengthened order bookings over the past three quarters; Ericsson's progress in reducing its cost base to profitably accommodate substantially lower revenues; sequential improvements in performance; the expectation that revenues near last year's run rate of SEK 115 billion per annum will generate strengthening profitability; and the company's ability to maintain strong alternate liquidity to support any additional investments and forthcoming debt maturities.

Currently the rating level continues to reflect the ongoing challenges facing Ericsson in its markets which principally stem from low market revenue visibility.

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