STOCKHOLM, Sweden-Barely a week after its rights issue, telecom equipment maker L.M. Ericsson said the company’s downgrade by Moody’s Investors Service will increase its financing cost. Ericsson’s shares dropped on the downgrade.
However, the company said “we believe we have sufficient liquidity to carry us through this uncertain market situation,” while noting that “our view that in the short-term the market is indeed characterized by great uncertainty and the third-quarter development so far does not indicate any improvement.”
Ericsson expects to make a profit next year, according to the statement.
Moody’s downgraded the company to Ba2 from Ba1.
