|
|
 |
|
Viewing report
|
|
|
|
Bulletin: Nortel Asset Deal Has No Impact On Swedish Telco Supplier Ericsson 'BBB+/A-2' Ratings And Stable Outlook Jul 09
Standard & Poors, July 2009
Abstract
PARIS (Standard & Poor's) July 29, 2009--Standard & Poor's Ratings Services said today that its ratings and outlook on Sweden-based world-leading mobile telecoms infrastructure supplier Ericsson (Telefonaktiebolaget LM) (BBB+/Stable/A-2) are unaffected by the company's agreement to buy wireless assets from Canadian competitor Nortel Networks for $1.13 billion in cash. While we believe that the acquisition is likely to somewhat reduce Ericsson's financial flexibility, the company's net cash position is strong, at Swedish krona (SEK) 28 billion ($3.6 billion) as of June 30, 2009, including postretirement benefit provisions in debt. Ericsson's reported gross cash and investments of SEK75 billion as of the same date, including SEK64 billion at the parent company, should amply cover acquisition and integration costs in our opinion....
Companies mentioned in this report are: Ericsson (Telefonaktiebolaget L.M.)
Action: Bulletin
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
|
|
|
|
