Fitch ups Motorola debt to A-

Fitch Ratings said it upgraded the following ratings for Motorola, Inc.: issuer default rating to A- from BBB+, senior unsecured debt to A- from BBB+ and commercial paper to F1 from F2.

In addition, Fitch has assigned an A- rating to Motorola's $1 billion senior credit facility expiring May 2007.

The outlook is stable.

Fitch said the upgrade reflects Motorola's strengthened free cash-flow profile, improving credit protection measures due to solid operating performance and debt reduction, a relatively diversified product portfolio compared to competitors and continued market share gains in mobile handsets.

Credit concerns continue to center on expectations for more aggressive share repurchases and the competitive mobile handset industry, which is highlighted by constant pricing pressures and quarterly share shifts, the necessity for continual product introductions, significant ongoing capital spending and research and development investments and potential macroeconomic shocks to consumer spending.

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