Fitch ups Ericsson

Fitch Ratings said it upgraded Telefonaktiebolaget LM Ericsson's senior unsecured rating to BB+ from BB- and changed the outlook to positive from stable.

Fitch said the upgrade reflects the significant improvement in Ericsson's financial profile as reported in recent quarters, the completion of its cost base restructuring and signs that revenue conditions have begun to stabilize.

Fitch noted that Ericsson, as the leader in the supply of mobile network infrastructure with about 30% of the market, is well placed to benefit from any improvement in demand conditions. The company also exhibits extremely sound liquidity in the form of cash balances of SEK78 billion.

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