Ericsson debt downgraded to junk by Moody’s for the first time in 12 years

There was more bad news for networking giant Ericsson as credit rating agency Moody’s downgraded its debt to junk status for the first time since 2005.
Moody’s rates credit risk on a scale with Aaa as the safest bet and C the dodgiest (see table below). The numbers 1-3 used as sub-qualifiers, 1 being better and 3 being worse, and the cut-off point between investment grade and speculative – otherwise known as ‘junk’ – is considered to be between Baa3 and Ba1.
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