S&P rates Ericsson loan BB

Standard & Poor's said it assigned its BB long-term rating to Ericsson Telefonaktiebolaget LM's $1 billion senior unsecured credit facility, which was amended on June 22. S&P also revised its outlook on Ericsson to stable from negative following publication by the group of its second-quarter 2004 results, which show an improved group performance and affirmed its BB/B corporate credit ratings and BB senior unsecured debt ratings on Ericsson.

S&P said the ratings factor in expectations that the wireless infrastructure industry will grow at least at single-digit rates at constant exchange rates over the medium term and that Ericsson will leverage its achieved lighter cost structure to sustain positive profitability and free cash flow generation.

Ericsson is also expected to preserve a strong cash position to mitigate the industry's still-modest medium-term visibility, overcapacity, strong price competition and technology risks, S&P said.

© 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.