May 23, 2019 / 3:20 PM / 3 months ago

BRIEF-Fitch Says Scope of Huawei Ban to Dictate Global Supplier, Rival Impact

May 23 (Reuters) - Fitch:

* FITCH SAYS BREADTH OF U.S. BAN ON HUAWEI TECHNOLOGIES WILL LIKELY DETERMINE EFFECT ON CHINESE TELECOM FIRM’S SUPPLIERS AND COMPETITORS

* FITCH SAYS BELIEVE COMPANIES CAN DIVERT SALES TO HUAWEI’S ASIAN & EUROPEAN RIVALS THAT WILL LIKELY BENEFIT FROM HUAWEI’S STRUGGLES

* FITCH SAYS FITCH DOES NOT EXPECT DEMAND FOR SEMICONDUCTORS AND OTHER HARDWARE TO DECLINE AS A RESULT OF SANCTIONS ON HUAWEI

* FITCH SAYS NEAR-TERM CREDIT EFFECTS OF HUAWEI BAN SHOULD BE MINIMAL, DESPITE SIGNIFICANT EXPOSURE FOR SOME UPSTREAM U.S. TECHNOLOGY COS

* FITCH SAYS POTENTIAL CONTRACTION OF HUAWEI’S TELECOM NETWORK EQUIPMENT & SMARTPHONE SALES DUE TO U.S. SANCTIONS WOULD LIKELY BE ABSORBED BY CO’S COMPETITORS

* FITCH SAYS SECURITY CONCERNS FACING HUAWEI IMPROVE STRATEGIC STANDING OF NOKIA & ERICSSON IN MANY REGIONAL MARKETS, PARTICULARLY AS 5G ADOPTION GROWS

* FITCH SAYS CREDIT IMPLICATIONS OF HUAWEI BAN SHOULD BE NEGLIGIBLE FOR MOST GLOBAL TECHNOLOGY SUPPLIERS RATED BY FITCH

* FITCH SAYS IF HUAWEI’S ABILITY TO SELL & SUPPORT NETWORK EQUIPMENT TO OPERATORS IS IMPAIRED, ERICSSON & NOKIA WOULD LIKELY BENEFIT

* FITCH SAYS EUROPEAN NETWORK SUPPLIERS MAY NOT NECESSARILY EXPERIENCE IMMEDIATE MARKET SHARE OR PRICING GAINS AS A RESULT OF SANCTIONS ON HUAWEI

* FITCH SAYS IF EUROPEAN SUPPLIERS ARE FORCED TO COMPLY WITH U.S. RESTRICTIONS ON HUAWEI, REV IMPLICATIONS FOR STMICROELECTRONICS WOULD LIKELY BE NEGATIVE Source text for Eikon: Further company coverage:

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