Apple Credit Rating 'AAA'... Safe Asset Equivalent to US Government

Moody's AAA Rating
Safe Asset Evaluation Equivalent to U.S. Government
Two Levels Higher Than Korea
Third Among Corporations
Wall Street Also Raises Target Prices in Line

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Apple has joined the 'Triple A' (AAA) credit rating club. It is the third company to achieve this after Microsoft (MS) and Johnson & Johnson (J&J). Apple's credit rating is at the same level as the United States' national credit rating and two levels higher than South Korea's (Aa2).

Following a series of positive evaluations from investment banks, the credit rating agency's assignment of the highest rating indicates growing expectations for Apple's future growth and stability.

International credit rating agency Moody's announced on the 21st (local time) that it has upgraded Apple's credit rating from Aa1 to Aaa. The rating outlook was presented as stable.

Razh Joshi, a Moody's analyst, evaluated, "Apple has excellent liquidity and is expected to continue growing over the next 2 to 3 years. The business outlook is very strong."

Analyst Joshi added, "Apple has established itself as a premium brand based on a broad customer base and strong customer loyalty."

The Aaa rating Apple received is the same as the U.S. national credit rating. Until now, only two private companies, MS and J&J, have received this rating.

With this rating, Apple is recognized as a safe asset comparable to the U.S. dollar. The massive cash reserves of $173 billion held by Apple are seen as the foundation of the company's stability.

Moody's cited short product cycles, changes in consumer preferences, and supply chain management as risk factors for Apple.

Thanks to the expansion of iPhone sales, Apple's revenue increased by 33% and profit by 65% this year. Based on strong performance, Apple's stock price surged 30% this year, surpassing the $170 mark. The market capitalization is also close to breaking the $3 trillion mark. As of today, Apple's market capitalization stands at $2.83 trillion.

Investment bank Morgan Stanley set Apple's target price at $200. Bank of America (BoA) raised the target price to $210.

Wall Street is focusing on Apple's upcoming augmented reality (AR) and virtual reality (VR) headset launches as an opportunity to elevate the company's value to the next level. The much-rumored Apple Car under development is also being evaluated as a potential future growth driver.

This content was produced with the assistance of AI translation services.