NEW YORK-Moody’s Investors Service downgraded Motorola Inc. because of what the rating agency describes as pressure on the wireless vendor’s performance in all segments of its businesses.
Its senior unsecured debt dropped to Baa2 from A3, which is just above junk status.
“The negative outlook reflects the uncertainties regarding the future performance of many of Motorola’s operating segments and the sizable overhang of pending lawsuits related to Iridium,” said the ratings agency. “Further deterioration in operating performance or unfavorable litigation outcomes could result in additional downgrades.”
In other news, Motorola said it will shed 7,000 jobs and take charges of about $3.5 billion, 90 percent of which will come out of its second quarter. The wireless giant, however, affirmed its forecast for the second quarter and the whole year, expecting to turn a profit of no less than 4 cents a share.
