6 February 2024 – Fitch Rankings has affirmed Lenovo Group Restricted (HKSE: 992) (ADR: LNVGY)’s Lengthy-Time period Overseas- and Native-Forex Issuer Default Rankings (IDRs) at ‘BBB’ with a steady outlook. Specifically the report cited solidifying PC management, resumption of PC sector development, rising AI alternatives, and additional service-led transformation as causes for the score. General, the report and score reaffirms the effectiveness of the corporate’s clever transformation technique and the Group’s robust place and pocket-to-cloud portfolio that sees it capturing the great development alternatives within the AI period.
Based on the Fitch Rankings report, “The affirmation displays Fitch’s expectation that Lenovo will keep its private laptop (PC) management and robust administration execution, which has positioned the corporate nicely to profit from a possible restoration in PC demand from 2024. As well as, Fitch expects additional progress in Lenovo’s service-led transformation to drive non-PC income development that can improve diversification, enhance margin profile, and cut back volatility in profitability and money era, which will likely be key for a score improve.”
“Lenovo’s AI initiatives ought to permit it to grab rising market alternatives and assist its enterprise profile. Lenovo is creating AI PCs, to be launched within the second half of 2024. It is going to make investments an extra USD1 billion to drive the event of its AI portfolio, together with AI-enabled units, infrastructure and options. It has main AI collaborations with NVIDIA, Microsoft and AMD. For its options and providers group, it plans to launch new AI-embedded providers within the areas of digital office, hybrid cloud and sustainability options.” Fitch’s report added, “…Lenovo is on the trajectory to realize higher diversification and additional margin enlargement within the subsequent few years.”
At CES 2024 final month, Lenovo unveiled a full lineup of greater than 40 new units and options powered by AI, furthering the corporate’s imaginative and prescient of AI for All, together with the first AI PC. The bulletins introduced Lenovo 105 awards and accolades at CES.
Along with Fitch score, Lenovo is presently rated ‘BBB’ by S&P International Score with a steady outlook, and ‘Baa2’ by Moody’s with a steady outlook.
About Lenovo
Lenovo is a US$62 billion income world expertise powerhouse, ranked #217 within the Fortune International 500, using 77,000 folks around the globe, and serving thousands and thousands of consumers every single day in 180 markets. Centered on a daring imaginative and prescient to ship Smarter Know-how for All, Lenovo has constructed on its success because the world’s largest PC firm by additional increasing into development areas that gasoline the development of ‘New IT’ applied sciences (shopper, edge, cloud, community, and intelligence) together with server, storage, cellular, software program, options, and providers. This transformation along with Lenovo’s world-changing innovation is constructing a extra inclusive, reliable, and smarter future for everybody, in every single place. Lenovo is listed on the Hong Kong inventory trade underneath Lenovo Group Restricted (HKSE: 992)(ADR: LNVGY). To search out out extra go to https://www.lenovo.com, and browse concerning the newest information through our StoryHub.
