Posted on 12/07/2008 3:35:52 PM PST by TigerLikesRooster
Motorola Debt Downgraded to Junk Status
Debt ratings agency, Standard and Poors (S&P) has dropped Motorola's long-term corporate credit rating to 'BB+' from 'BBB' - which is basically junk status - on the outlook for its mobile phone division.
"The current rating action reflects continual operational challenges in the Mobile Devices unit, which are not likely to be reversed over the intermediate term, leading to depressed profitability and returns, adjusted debt leverage over 4x, and substantially diminished free cash flows."
S&P also assigned a recovery rating of '3' to this debt, indicating the expectation for meaningful (50% to 70%) recovery in the event of payment default. S&P lowered the long-term ratings to 'BBB' reflecting further deterioration of the Mobile Devices unit's operating performance.
S&P said that the rating is stable - indicating that it does not anticipate any imminent changes in the company's prospects.
(Excerpt) Read more at cellular-news.com ...
Ping!
This is what happens to companies that don’t pay attention to what some of their largest customers are saying.
In the case of Motorola, Apple was their client, they ignored them, now Apple’s gone to another supplier and has come out with a product to crush their cell phone division.
Buy! Buy now, buy huge........
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Motorola Debt Downgraded to Junk Status
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Well-deserved fate...for a long-term loser of a stock.
It’s always a shock to see a company as well known as Motorola go down the tube.
Motorola recovered with the Razr, but hasn't done much since, and is on the ropes again.
I used to work for “Mother-Ola” and they spend every spare penny on fluff. Instead of acquisition they blow it on image. This doesn’t surprise me.
I have a Motorola Razr. Recently, it developed a problem with the Alarm Clock—stopped working.
They flashed the phone. That failed.
They sent a new one—and I discovered that the new phones don’t allow the user to create mp3s and use them as ringers. You have to BUY all the ringers.
I sent the new phone back, and am using the defective phone instead, because I like freedom.
motorola was a good company until little (grandson) galvin took over
Their phones have been junk for YEARS. We’ve stopped buying them. Wife’s got the Razr or whatever because it looked cool. The battery is only good for about twenty minutes without re-charging. We took it back to the cell phone service provider and they said it’s a known issue - the batteries are small and weak.
It can be done. I've now got over 70 that I made installed on my W755. This is how I did it:
W755 Ringtone Transfer Solved (HowardForum)
Do a search on that site and you will find information on adding ringtones to a Razr.
Before I retired, I dealt with Motorola for many years, representing purchasers of cellular infrastructure equipment and handsets.
My clients bought a lot of gear (we’re talking contracts in the $500M and up range) and I’ve negotiated with Motorola, Ericsson, Nokia, Siemens, Nortel and others.
Motorola went out of its way to be a pain in the backside and was my least favorite company to negotiate with. Not because they drove a tough bargain—they all did—because they were miserable to do business with after the contract was signed. Ericsson and Nokia were the class acts of the business.
Jack
In the day Motorola was the king of excellent radio electronics. Today, they are the worst electronics.
I’ve never had an issue with a Motorola product. It seems they have been poorly managed and haven’t developed a vision for the future (which is...uh...last year), therefore, for consumers anyway, no value proposition to sell.
Reminds me of GM, for some odd reason. LOL
‘Twas Iridium that killed the beast.
“I used to work for “Mother-Ola” and they spend every spare penny on fluff.”
Years ago I handled the Motorola account as one of their vendors. We called them “Broke-a-rola” as they never seemed capable of paying their bills on time...Motorola and “junk bond” status go together like ham and eggs.
I used to work there too. Galvin drove the company into the ground. He is all image and no substance. All turban and no goats.
nepotism - one of the worst
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