Moody's ups Ericsson ratings

Moody's Investors Service said it upgraded to Ba2 from B1 the long-term debt ratings of Telefonaktiebolaget LM Ericsson, including the senior implied, issuer, debt and bank loan ratings. The company's Not-Prime short-term debt rating was affirmed.

The outlook is positive.

Moody's said the rating upgrade is based on its view that the global mobile infrastructure market is evidencing a steady degree of growth, Ericsson's success in retaining its leading position in almost all standards of wireless telephone equipment, the company's recent track record of achieving growth in operating profits and free cash flows even including the cost of restructuring measures, but excluding any cash releases from working capital and management's practice of retaining generated cash flows to build a highly liquid balance sheet in order to strengthen the company's financial flexibility.

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