Wednesday, January 6, 2010


Analyst Note Jan. 05, 2010 | Morningstar
Morningstar is initiating credit coverage of Motorola with an issuer rating of BBB. Though the firm is best known for its struggling wireless phone business, the solidly profitable home and network mobility and enterprise mobility segments, coupled with a large cash position, lead us to believe that there is a high likelihood that the firm will be able to meet its obligations over the next
several years. Motorola currently holds about $7 billion in cash and investments versus $4 billion in debt and $2.5 billion of pension and post-retirement health benefit obligations, and it has carried a large cash and investments balance for many years. Only $1.5 billion in
debt comes due over the next four years.

full report here

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