S&P: Ericsson view to stable

Standard & Poor’s said it revised the outlook on Ericsson (Telefonaktiebolaget LM) to stable from negative.

The agency also said it affirmed the company’s BBB+ long-term and A-2 short-term corporate credit ratings.

The outlook revision reflects the improvement in Ericsson’s profitability over the past four quarters and an expectation that Ericsson’s EBITDA margin will remain at 14% to 15% in 2014 through 2015, S&P said.

This is supported by the company’s completion of low-margin European modernization projects that weighed on margins until the end of 2013, the agency said.

These factors will offset price pressure and further restructuring costs, which are ongoing features in the industry, S&P said.

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