S&P affirms Motorola, lowers outlook to negative

Standard & Poor's said it affirmed its A- corporate credit rating on Motorola Inc. and revised the rating outlook to negative from stable.

At the same, S&P said it lowered its short-term and commercial paper ratings on the company to A-2 from A-1.

The revised outlook reflects greater than previously anticipated operational and competitive pressures facing the Mobile Devices operations and the potential for further shareholder enhancement efforts beyond the just-expanded share repurchase program, the agency said, adding that the phone unit had represented more than one-half of revenues and earnings.

The short-term rating change reflects diminished assurance that the company will be able to sustain the substantial degree of excess liquidity reflected in the previous A-1 short-term rating, the agency said.

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