Fitch affirms Motorola

Fitch Ratings said it affirmed Motorola Inc.'s A- issuer default, senior unsecured debt and senior credit facility ratings and F1 commercial paper rating. The outlook is stable.

The affirmation follows Motorola's announcement that it has signed a definitive agreement to acquire Symbol Technologies Inc. for $3.9 billion in cash. The acquisition is subject to customary regulatory approval and approval by Symbol's stockholders and is expected to be completed in late 2006 or early 2007.

Although slightly reduced in the near-term due to the acquisition, Fitch believes Motorola's liquidity position remains strong, dominated by a cash balance of $14 billion as of July 1. The acquisition of Symbol is expected to complement Motorola's networks and enterprise business segment and illustrates Motorola's commitment to acquiring intellectual property rights, the agency said.

For the year ended Dec. 31, 2005, Symbol's sales were about $1.8 billion and operating EBITDA was roughly $148 million, representing a transaction multiple of 25x EBITDA and greater than 2x sales.

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