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leistb
12-05-2008, 02:11 PM
Friday, December 05, 2008

S&P Downgrades Motorola To Junk Status


Wallace Witkowski ([email protected])



SAN FRANCISCO -- Standard & Poor's said Friday it cut the long-term corporate credit rating on Motorola Inc. to BB+, or junk status, from BBB. The rating agency also took the company's ratings off review for a possible firther downgrade. The outlook is stable. "The current rating action reflects continual operational challenges in the Mobile Devices unit, which are not likely to be reversed over the intermediate term, leading to depressed profitability and returns, adjusted debt leverage over 4x, and substantially diminished free cash flows," said Bruce Hyman, an S&P credit analyst, in a statement.


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