International rating Agency Moody’s Investors Service lowered the long-term rating of unsecured obligations of the Swedish Ericsson AB, the world’s largest manufacturer of equipment for wireless networks, to “junk” level of Ba1 from Baa3.

At the same time in accordance with the rules of rating of the companies with speculative ratings Ericsson has a corporate family rating (CFR) of the same level (“Ba1”) and probability of default rating to “Ba1-PD”.

The Outlook on all ratings – “stable”.

Moody’s explains the rating action with expectations for the negative impact of restructuring costs on operating profit and cash flow Ericsson in 2017-2018 .