Cupertino’s Apple receives Moody’s top ‘AAA’ credit rating on growth promise

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Cupertino’s Apple receives Moody’s top ‘AAA’ credit rating on growth promise

Moody’s Inc., the New York City-based American multinational credit rating agency, had upgraded Apple Inc’s long-term credit rating to ‘AAA’ with a stable outlook as Apple Inc joins an elite league of mega-cap legends that includes Microsoft Corp alongside Johnson & Johnson among others.

On top of that, the New York City-based credit rating agency had provided Apple Inc., the Cupertino-based iPhone manufacturer and the United States’ largest corporate taxpayer, with its highest rating citing the Californian tech giant’s “exceptional liquidity” alongside robust earnings.

Apart from that, Apple Inc stocks had soared over 30.0 per cent this year, while the iPhone maker’s market valuation had been shrinking its distance to become the world’s first-ever entity to breach a $3-trillion barrier.

Nonetheless, adding a speed-breaker to Apple Inc’s overweening growth momentum, Moody’s Inc said that the Cupertino-based tech conglomerate’s short product cycle could emerge as a risk in a longer-term outlook, while an ever-evolving consumers’ preference could pose further challenges to its appetite.

Besides, management of a mass-scale and complex supply chain with requirements of continuous product updates could threaten Apple Inc’s dominance in a highly competitive smartphone industry. Back in October, Apple Inc had issued a statement saying that a swathe of supply chain disruptions had costed the tech behemoth a whopping $6 billion in sales and impacts of a lingering supply chain constraint could worsen further over the holiday quarter.

Moody’s ranks Apple Inc ‘AAA’ with stable outlook

Nevertheless, Apple Inc’s overall earnings in fiscal 2021 soared as much as 65 per cent on a year-on-year basis, while the tech titan’s revenues jumped 33 per cent amid robust demand of its products and services.

Meanwhile, addressing to a robust business profile of Apple Inc., a Moody’s analyst Raj Joshi said in a note, “Apple's very strong business profile reflects its substantial operating scale, a large installed base of products and users of its services, strong customer loyalty, and premium brand positioning”.