Edition:
United Kingdom

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


Thursday, 23 May 2019 

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.