Fitch: No change for Ericsson

Fitch Ratings said it sees no rating impact from Telefonaktiebolaget LM Ericsson's (BBB+ with stable outlook) proposed acquisition of U.S.-based Redback Networks.

This view takes into account the strategic nature of the acquisition, more stable demand conditions within the telecom equipment industry and Ericsson's significant liquidity, Fitch said.

Fitch said it views Redback as a strategic acquisition that will deliver routing technology and research and development expertise to aid the delivery of converged services and complement Ericsson's IP infrastructure business.

© 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.