Fitch lifts Ericsson to stable

Fitch Ratings said it revised the outlook on Telefonaktiebolaget LM Ericsson’s issuer default rating to stable from negative and affirmed the issuer default rating and senior unsecured rating at BBB+.

The network modernization strategy that the company embarked on in 2010 has improved its market position and its revenue mix has shifted in favor of margin-accretive capacity expansion and upgrade business, Fitch said.

The company’s cash flow performance also has materially improved, the agency said.

Fitch also said it considers the positive growth prospects for telecom equipment and services.

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