Moody’s Ratings Affirms Lenovo’s Baa2 Ratings; Outlook Stable

HONG KONG - Moody’s Ratings (Moody’s) has affirmed the Baa2 issuer and senior unsecured ratings of Lenovo Group Limited (HKSE: 992) (ADR: LNVGY), and maintained the stable outlook, according to the official website of Lenovo. 

According to the report from Moody’s, Lenovo’s Baa2 issuer rating reflects the company’s long operating history and track record of organic and inorganic business growth; leading position as a PC provider; and diverse geographic exposure in terms of revenue generation and operations.

“The rating affirmation reflects Lenovo’s prudent financial policy, which has allowed the company to maintain a strong financial profile with low leverage and excellent liquidity, despite a revenue decline resulting from slower demand in global PCs over the past few years. We also expect the company to sustain its strong credit profile through maintaining its leading market position in PCs, supported by steady global demand for PCs and its growing smartphone, server and technology solution businesses over the next 12-18 months,” according to Moody’s.

This affirmation followed the latest industry report published by the International Data Corporation (IDC) last week, stating that Lenovo maintains the first place in the global PC market with a market share of 22.7%, and its unit shipment growth has surpassed the overall market growth.

In addition to Moody’s Ratings, Lenovo is currently rated ‘BBB’ by Fitch with a stable outlook, and ‘BBB’ by S&P Global Rating with a stable outlook. Lenovo also maintains the highest AAA score in MSCI ESG Ratings.