Moody's ups Ericsson

Moody's Investors Service said it upgraded the senior debt rating of Telefonaktiebolaget LM Ericsson to A3 from Baa1 and the provisional rating on the group's $5 billion euro medium-term notes program to provisional A3 from provisional Baa1.

The agency also said it affirmed the prime-2 rating on the group's short-term debt.

The outlook is stable.

The upgrade recognizes Ericsson's lengthening track record in terms of revenue and earnings stability, despite a volatile end-market and increasing competitive threats, Moody's said.

Over the past five years, Ericsson has generated strong and increasing free cash flow and accumulated cash, notwithstanding a number of medium-sized acquisitions, the agency said.

Moody's said it expects these stable operating trends to continue in a gradually improving market.

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