Moody's downgrades Motorola's debt to 'Baa2'
Moody's downgrades Motorola's senior unsecured debt rating to 'Baa2'
NEW YORK (Associated Press) - Moody's Investors Service said Wednesday it has downgraded poor-performing handset maker Motorola Inc.'s senior unsecured debt rating to "Baa2" from "Baa1."
A "Baa2" rating is investment grade. The ratings agency said its downgrade was driven by the "continued deterioration" in Motorola's handset business and its effects on the company's cash generating capabilities and cash balances.
While Moody's noted that Motorola has "loosely sketched a plan" to fix the business, its details are limited.
Motorola is also facing stiff competition, most notably from South Korea's Samsung, said Matthew Jones, a senior analyst with Moody's, in a statement.
Moody's said the rating outlook is negative.
Shares of Schaumburg, Ill.-based Motorola rose 17 cents to $9.94 in afternoon trading.
source
NEW YORK (Associated Press) - Moody's Investors Service said Wednesday it has downgraded poor-performing handset maker Motorola Inc.'s senior unsecured debt rating to "Baa2" from "Baa1."
A "Baa2" rating is investment grade. The ratings agency said its downgrade was driven by the "continued deterioration" in Motorola's handset business and its effects on the company's cash generating capabilities and cash balances.
While Moody's noted that Motorola has "loosely sketched a plan" to fix the business, its details are limited.
Motorola is also facing stiff competition, most notably from South Korea's Samsung, said Matthew Jones, a senior analyst with Moody's, in a statement.
Moody's said the rating outlook is negative.
Shares of Schaumburg, Ill.-based Motorola rose 17 cents to $9.94 in afternoon trading.
source
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