Microsoft Corporation (MSFT): Higher Creditworthiness Than Apple Inc. (AAPL)?

The ratings agencies are more concerned with long-term revenue stability, so although Apple Inc. (NASDAQ:AAPL)’s flying high right now in terms of its total cash position and earnings growth, other consumer hardware companies have fallen from similarly strong positions.

Since Microsoft Corporation (NASDAQ:MSFT) generates a large portion of its revenue from recurring enterprise contracts associated with high switching costs, the agencies tend to give the software giant more credibility.

When considering the current figures, Microsoft’s higher credit rating may not make much sense, but remember these are the same agencies that were getting paid to slap AAA ratings on collateralized mortgage obligations that imploded not so long ago.

The article Is Microsoft More Creditworthy Than Apple? originally appeared on Fool.com.

Fool contributor Evan Niu, CFA, owns shares of Apple. The Motley Fool recommends Apple and Moody’s. The Motley Fool owns shares of Apple and Microsoft.

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