Moody’s drops Ericsson debt to Baa3

Moody's Investors Service said it downgraded Telefonaktiebolaget LM Ericsson’s senior unsecured debt ratings to Baa3 from Baa2 and medium-term note program rating to provisional Baa3 from provisional Baa2.

The outlook is negative. This concludes the review for further downgrade process initiated on Oct. 14.

"The ratings downgrade to Baa3 reflects our view of a persistently weak revenue, earnings and cash flow outlook for Ericsson and its core telecom networks equipment market over the next two years, balanced by the company's good liquidity and a track record of shareholder support," Alejandro Núñez, Moody's vice president, senior analyst and lead analyst for Ericsson, said in a news release.

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