Fitch rates Acer BBB-

Fitch Ratings said it assigned BBB- long-term foreign- and local-currency issuer default ratings and an A(twn) national long-term rating to Taiwan-based Acer Inc.

The outlook is stable.

The ratings reflect Acer's strong market position as the world's fourth-largest personal computer vendor, with a global market share estimated at over 5% in the first half of 2006, Fitch said. The ratings also reflect Acer's robust financial profile characterized by solid fixed-charge coverage, abundant liquidity and a net cash position.

Acer's debt-to-EBITDA ratio was below 0.5x and its cash balance of NT$31.1 billion at the end of June significantly exceeded interest-bearing debt of NT$2.8 billion, with further liquidity provided by the company's large holding of marketable securities and substantial unused banking limits.

Fitch said it remains concerned about the competitive and volatile nature of the computer industry, which faces constant pressures from pricing and new product introduction.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.