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Fitch: Unit sale won't affect Motorola's ratings

/ Source: The Associated Press

Fitch Ratings said Monday that several of its ratings for Motorola Inc. are unaffected by the company's proposed sale of its wireless networks division to Nokia Siemens Networks for $1.2 billion.

The credit ratings agency said its issuer default and senior unsecured notes ratings remain "BBB-", its senior secured revolving credit facility stands at "BBB", and its short-term issuer default rating and commercial paper program is unchanged at "F3."

Motorola's wireless networks division supplies wireless carriers with equipment they need to connect to cell phones.

The sale is expected to close by the end of this year.

Fitch said it expects Motorola Solutions' issuer default rating will be at least "BBB-" once Motorola completes the transaction.

The credit agency projects revenues and operating profitability for the networks business to contract modestly in 2010 from 2009 levels, driven by lower capital spending anticipated by Verizon and further market share losses by Sprint-Nextel.

Shares of Motorola rose 42 cents, or 5.6 percent, to close at $7.92.