S&P Happier With Ericsson

S&P says Ericsson outlook is revised to stable on improved performance and prospects; ratings affirmed

August 3, 2004

1 Min Read

LONDON -- Standard & Poor's Ratings Services said today it revised its outlook on Sweden-based wireless telecommunications infrastructure supplier Ericsson Telefonaktiebolaget L.M. (Ericsson) to stable from negative following publication by the group of its second-quarter 2004 results, which show an improved group performance.

At the same time, Standard & Poor's affirmed its 'BB/B' corporate credit ratings and 'BB' senior unsecured debt ratings on Ericsson. In addition, Standard & Poor's assigned its 'BB' long-term rating to Ericsson's $1 billion senior unsecured credit facility, which was amended on June 22, 2004. At June 30, 2004, Ericsson had gross debt of Swedish krona (Skr) 46.3 billion (about $6.1 billion), including bond obligations of about Skr30.5 billion.

"The outlook revision reflects Ericsson's improved revenue levels and firm order books registered in the second quarter of 2004, which--given the group's lower breakeven point--have translated into healthy and sustainable levels of profitability and free cash flow generation," said Standard & Poor's director and credit analyst Leandro de Torres Zabala. "Ericsson's strong cash reserves further underpin the group's credit quality and liquidity, he added."

Standard & Poor’s

LM Ericsson

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like