Fitch: Ericsson unchanged

Fitch Ratings said it sees no immediate impact on Telefonaktiebolaget LM Ericsson's issuer default rating and senior unsecured BBB+ ratings following the weekend announcement of the agreement to buy the majority of Nortel's North American wireless business.

The transaction will, however, reduce the company's net cash position and near-term flexibility to deal with any potential cash call from joint ventures, the agency said.

"The level of interest, including bids from Finland's Nokia, private equity and Canada's Research in Motion appears to underline the value in these assets," said Stuart Reid, a senior director in Fitch's European TMT group.

"However, the agreed price of $1.13 billion will reduce Ericsson's liquidity headroom in the near term. While underlying performance from the core networks business is relatively solid, Fitch does not discount the possibility of potential cash calls from either of the company's joint ventures - namely Sony Ericsson and ST-Ericsson."

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