Moody's alters Ericsson view to positive

Moody's Investors Service said it changed to positive from stable the outlook on the ratings of Telefonaktiebolaget LM Ericsson. Concurrently, the agency affirmed the company's Ba1 corporate family rating, its Ba1-PD probability of default rating and the Ba1 senior unsecured long-term debt ratings.

"The outlook change to positive from stable reflects the successful execution of the company's strategy which continues to lead to a significant improvement in the company's operating performance and margins," said Ernesto Bisagno, a Moody's vice president, senior credit officer and lead analyst for Ericsson, in a press release.

"It also reflects our expectation that Ericsson's credit metrics will continue improving over the next two years driven by the steady growth of the radio access network (RAN) market and the reduction of operating losses in the digital service (DS) segment," Bisagno added.

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