Fitch pulls Ericsson from junk

Fitch Ratings said it upgraded Telefonaktiebolaget LM Ericsson's senior unsecured rating to BBB- from BB+. The outlook is positive.

Fitch said the upgrade reflects the solid financial profile exhibited by Ericsson in its fourth quarter 2004 and fiscal year 2004 results and the growing signs that demand conditions in mobile system markets have stabilized.

The company has also largely completed its cost base restructuring and has come through the crisis in telecom equipment spending with a much improved cost structure and a healthy balance sheet, according to Fitch.

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