Fitch Ratings affirmed its ratings on Motorola Inc. and raised its rating outlook to “stable” from “negative” Tuesday, saying it is more confident in the health of the company’s business.
Fitch affirmed a “BBB-” issuer default rating, a “BBB” senior secured revolving credit facility rating an a “BBB-” rating of the company’s senior unsecured notes.
The rating actions affect approximately $4.9 billion of total debt, including the company’s undrawn $1.5 billion revolving credit facility, Fitch said.
The ratings agency said it has “increasing confidence” that Motorola’s operating performance will be better than its prior expectations in 2010.
Growing demand for smartphones, a “broad adoption of the Android-based operating system and solid commercial acceptance” of Motorola’s Droid smartphone are among Fitch’s reasons for expecting solid momentum from Motorola’s Mobile Devices unit.
Its Enterprise Mobility unit, which makes police radios, bar-code scanners and other equipment for large customers, is stable due to gradually recovering business and public safety markets, Fitch said.
Shares of Motorola slid 7 cents, to $7.91 in afternoon trading.
