Outlook On Ericsson Revised To Negative On Operating Pressures; 'BBB+/A-2' Ratings Affirmed Nov 07
- ID: 1873487
- November 2007
- Standard & Poors
PARIS (Standard & Poor's) Nov. 27, 2007--Standard & Poor's Ratings Services said today that it has revised to negative from stable its outlook on Swedish telecommunications equipment supplier Ericsson (Telefonaktiebolaget L.M.). The 'BBB+' long-term and 'A-2' short-term corporate credit ratings were affirmed. The outlook revision follows Ericsson's announcement that fourth-quarter 2007 revenues will likely be in the low end of its very broad expectation range of Swedish krona (SEK)53 billion-SEK60 billion. This follows significantly weaker-than-expected profits and cash flows for third-quarter 2007, the announcement of low fourth-quarter profits in October, and the ensuing departure of the company's chief financial officer. "Although we expect Ericsson's performance to pick up by second-half 2008, the negative outlook reflects the possibility of a one-notch...
Companies mentioned in this report are: Ericsson (Telefonaktiebolaget L.M.)
Action: Outlook: Negative
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