graphic
News > Technology
S&P raises Apple outlook
June 9, 1998: 4:26 p.m. ET

Computer maker revised to positive from negative after recent profits
graphic
graphic graphic
graphic
NEW YORK (CNNfn) - Citing the company's improved profitability and financial flexibility, Standard & Poor's Tuesday revised its outlook for Apple Computer Inc. from negative to positive.
     Despite the good news, the rating on Apple's senior unsecured debt wasn't changed and remains B-, six notches below investment grade.
     The low unsecured debt rating means it costs Apple more to borrow money over the short and long term.
     Still, S&P left open the possibility that an upgrade could come in the foreseeable future.
     "Ratings could improve if Apple is able to stabilize revenues while maintaining profitability and financial flexibility," S&P said.
     Apple's recent earnings improvement played a role in its decision, S&P said. The company reported earnings of $102 million for the six months ended March 27, marking its first profitable six-month period in more than two years.
     S&P also praised Apple for improving its short-term cash and investments, which stood at $1.8 billion at the end of March.
     "However, longer-term concerns include Apple's ability to achieve sustainable revenue growth and profitability," the report said.
     Apple (AAPL) shares reacted positively to the news Tuesday, closing up 15/16 to 28-3/16.
     Apple shares have shot up substantially over the last year, although they are currently off their 52-week high of 31-5/8.
     (Click here to see an Apple stock chart)Back to top

  RELATED STORIES

Apple outlines new OS strategy - May 11, 1998

Apple unveils new computer - May 6, 1998

  RELATED SITES

Apple Computer Inc.

Standard & Poor's


Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney




graphic

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.