Moody’s upgrades Lenovo to Baa2; outlook stable

HONG KONG, March 02, 2022– Moody’s has upgraded the issuer rating and senior unsecured rating of Lenovo Group (HKSE: 992) (ADR: LNVGY) to Baa2 with a stable outlook, from Baa3 with a positive outlook.

According to the report from Moody’s, Lenovo’s new 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 upgrade reflects Lenovo’s improved credit profile in terms of leverage, driven by debt reduction and a higher level of EBITDA. We believe Lenovo will sustain its improved credit profile through maintaining its leading market position in personal computers (PCs), supported by steady global demand for PCs. In addition, we expect the company’s continued disciplined financial management will help it to maintain its excellent liquidity and improved debt leverage, which is strong for its rating category,” according to Moody’s.

The upgrade came after the company’s recent FY2021/22 Q3 earnings announcement which reported another record quarter, with historic highs for both profit and revenue and the Group’s first US$20 billion quarter.

Earlier this week, Fitch affirmed Lenovo’s rating at BBB with a stable outlook, and in July 2021 Standard and Poor affirmed Lenovo’s rating at BBB- with a positive outlook.