Research Update: Alcatel-Lucent Long-Term Rating Lowered To 'B-' On Higher-Than-Expected Cash Losses; Outlook Stable Jun 13
- Language: English
- Published: June 2013
PARIS (Standard & Poor's) Nov. 20, 2008--Standard & Poor's Ratings Services said today that its ratings and outlook on France-based telecom equipment supplier Alcatel Lucent (BB-/Negative/B) were unchanged after the company started exclusive negotiations with Dassault Aviation (not rated) to sell its 20.8% stake in defense group Thales S.A. (A-/Stable/A-2) at -38 per share. The transaction remains conditional at this stage. Although gross proceeds of -1.56 billion would underpin Alcatel Lucent's liquidity, this alone would not be enough to support a reversion to a stable outlook. Concerns over Alcatel Lucent's business risk profile, including soft carrier demand, very low margins, and high cash burn, are still overriding. We expect Alcatel Lucent's liquidity to remain adequate for the time being even...
Companies mentioned in this report are: Alcatel-Lucent
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