Following is a roundup of ratings changes for companies in the wireless market during the week of Feb. 28.
JP Morgan upgraded its rating on Texas Instruments from Underweight to Neutral on expectations of a mild upturn in the semiconductor industry beginning this year and continuing into 2006. The upgrade was part of an overall elevation of JP Morgan’s stance on the semiconductor sector from neutral to bullish. JP Morgan also raised its ratings on Intel, ON Semiconductor, Fairchild and Cypress from Neutral to Overweight and its rating on National Semiconductor from Underweight to Neutral.
Standard & Poor’s Ratings Services lowered its corporate credit and senior unsecured debt ratings on MetroPCS Inc. from CCC+ to CCC, with a negative outlook. In lowering the rating, S&P cited the company’s failure to file financial statements with the Securities and Exchange Commission due to an ongoing SEC investigation.
Moody’s Investors Service upgraded its rating on L.M. Ericsson’s debt ratings to Ba1 from Ba2 and placed the ratings and its Not-Prime rating for short-term debt on review for possible further upgrade. Moody’s said the upgrade was a result of its view that the global mobile infrastructure market is showing steady growth, Ericsson’s success in retaining its leadership position in the mobile communications equipment market, and the company’s recent improvement in key metrics, including revenue growth.
Xinhua Far East China Ratings upgraded the issuer credit rating of Chinese equipment manufacturer ZTE Corp. from A to A+, which is the highest possible rating for companies in China’s technology sector. Xinhua said the rating change reflects ZTE’s management of turnover and earnings growth while maintaining profitability in the face of increasing competition and an uncertain regulatory environment.
Sonus Networks was hit with two downgrades this week. Janney Montgomery downgraded the company to hold, and Raymond James lowered its rating to outperform from strong buy. Sonus released preliminary fourth-quarter financial results this week, but it said it will delay filing its full report until an audit of its financial statement can be completed. The company said it expects to file its fourth-quarter report by March 16.
