Fitch Upgrades Lenovo to ‘BBB’; Outlook Stable

Fitch Ratings has upgraded Lenovo Group Limited’s Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR) and senior unsecured rating to ‘BBB’ from ‘BBB-‘. The Outlook is Stable. The agency has also upgraded the rating of Lenovo’s US$1 billion 3.421% notes due 2030 to ‘BBB’ from ‘BBB-‘.

According to the agency’s report, the upgrade reflects stronger global personal-computer (PC) demand, Lenovo’s solid execution of its strategy and its ongoing product mix improvement, driving the company’s market share gains, continued margin upside and higher operating cash generation.

The upgrade came after the company’s recent FY2020/21 Q3 earnings announcement which reported the second consecutive record-breaking quarter, with revenue, pre-tax income, and net income all reporting record highs.