Ericsson outlook cut

International credit rating agency Standard & Poor's cut its outlook for Swedish telecom equipment maker Ericsson on Tuesday from stable to negative.

The cut is a result of Ericsson’s profit warning last week, when the company said sales in the fourth quarter were likely to be a the lower end of previous expectations.

The past year has seen Ericsson’s star wane. The market capitalization of the world leader in mobile networks has almost halved to 239 billion kronor from 450 billion kronor at the start of the year.

Ericsson management has faced criticism in the wake of poor results, but chairman Michael Treschow has expressed confidence in CEO Carl Henric Svanberg.