Apple Inc.’s long-term credit rating was raised to AAA by Moody’s Investors Service, according to a report by Bloomberg on Tuesday.
- The upgrade places the iPhone maker in an exclusive group with Microsoft Corp. and Johnson & Johnson as the only U.S. Corporations in the S&P 500 with the highest potential credit score.
- Raj Joshi Moody’s analyst stated that the upgrade of Apple’s rating to AAA reflects the company’s exceptional liquidity and robust earnings that are expected to continue growing in the next 2 to 3 years.
- The action elevates a company that is still the world’s biggest company by market value, attributable to the success of the iPhone and a push into attractive new markets.
- Apple’s market capitalization swung around $3 trillion this year, with investors optimistic about an expansion into augmented reality and potentially cars that could maintain the growth of sales.
Moody’s stated that Apple’s financial policy is moving into a net cash neutral position over time, and its capital allocations will retain an exceptionally strong liquidity profile over the next 3 to 5 years. AAPL up +1.91%