Fitch Affirms Lenovo at ‘BBB’; Outlook Stable

6 February 2024 Fitch Ratings has affirmed Lenovo Group Limited (HKSE: 992) (ADR: LNVGY)’s Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at ‘BBB’ with a stable outlook. In particular the report cited solidifying PC leadership, resumption of PC sector growth, growing AI opportunities, and further service-led transformation as reasons for the rating. Overall, the report and rating reaffirms the effectiveness of the company’s intelligent transformation strategy and the Group’s strong position and pocket-to-cloud portfolio that sees it capturing the tremendous growth opportunities in the AI era.

According to the Fitch Ratings report, “The affirmation reflects Fitch’s expectation that Lenovo will maintain its personal computer (PC) leadership and strong management execution, which has positioned the company well to benefit from a likely recovery in PC demand from 2024. In addition, Fitch expects further progress in Lenovo’s service-led transformation to drive non-PC revenue growth that will increase diversification, improve margin profile, and reduce volatility in profitability and cash generation, which will be key for a rating upgrade.”

“Lenovo’s AI initiatives should allow it to seize growing market opportunities and support its business profile. Lenovo is developing AI PCs, to be launched in the second half of 2024. It will invest an additional USD1 billion to drive the development of its AI portfolio, including AI-enabled devices, infrastructure and solutions. It has major AI collaborations with NVIDIA, Microsoft and AMD. For its solutions and services group, it plans to launch new AI-embedded services in the areas of digital workplace, hybrid cloud and sustainability solutions.” Fitch’s report added, “…Lenovo is on the trajectory to achieve greater diversification and further margin expansion in the next few years.”

At CES 2024 last month, Lenovo unveiled a full lineup of more than 40 new devices and solutions powered by AI, furthering the company’s vision of AI for All, including the first AI PC. The announcements brought Lenovo 105 awards and accolades at CES.

In addition to Fitch rating, Lenovo is currently rated ‘BBB’ by S&P Global Rating with a stable outlook, and ‘Baa2’ by Moody’s with a stable outlook.


About Lenovo

Lenovo is a US$62 billion revenue global technology powerhouse, ranked #217 in the Fortune Global 500, employing 77,000 people around the world, and serving millions of customers every day in 180 markets. Focused on a bold vision to deliver Smarter Technology for All, Lenovo has built on its success as the world’s largest PC company by further expanding into growth areas that fuel the advancement of ‘New IT’ technologies (client, edge, cloud, network, and intelligence) including server, storage, mobile, software, solutions, and services. This transformation together with Lenovo’s world-changing innovation is building a more inclusive, trustworthy, and smarter future for everyone, everywhere. Lenovo is listed on the Hong Kong stock exchange under Lenovo Group Limited (HKSE: 992)(ADR: LNVGY). To find out more visit, and read about the latest news via our StoryHub.


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