(Bloomberg) Moody’s Investors Service has upgraded Apple to an AAA rating, citing robust liquidity and earnings prospects.
Moody analyst Raj Joshi says the iPhone giant’s pursuit of a net cash neutral position and capital allocations enables it to maintain strong liquidity in the next three to five years.
The upgrade is a plus for Apple, whose market cap rose past the $3 trillion mark this year and currently ranks as the most valuable company in the world.
Apple’s pursuits of augmented reality and cars are also seen as potential catalysts of future growth as investors bank on the developments for growth in sales beyond the iPhone gadgets.
Investors’ optimism on Apple is underlined by its bonds which trade at a lower yield compared to the US Treasuries carrying similar maturity.
The rating at Moody means that Apple joins an exclusive club of US companies with the highest possible credit score currently occupied by Microsoft and Johnson & Johnson with an AAA rating.
AAPL: NASDAQ is down -0.12% on premarket.
