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Moody's cuts Nokia on weak market position
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HELSINKI (Reuters) - Moody's cut its credit rating on Nokia, citing the Finnish mobile phone company's weakening market position and uncertainty over its transition to Microsoft's Windows Phone software.
Moody's said on Thursday that it was lowering...
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Thu Apr 7, 2011 4:49am EDT
HELSINKI (Reuters) - Moody's cut its credit rating on Nokia, citing the Finnish mobile phone company's weakening market position and uncertainty over its transition to Microsoft's Windows Phone software.
Moody's said on Thursday that it was lowering its rating on Nokia's senior debt to A3 from a previous A2. The agency also cut the company's short-term debt ratings to Prime-2 from Prime-1, and said the outlook on the ratings was negative.
"The rating downgrade primarily reflects Nokia's weakened market position in its core business, mobile devices, which has reduced the company's margins and funds from operations," Wolfgang Draak, Moody's senior vice president and lead analyst for Nokia, said in a note.
Nokia in February dumped its own software platform in favor of Microsoft Corp's, and analysts have said it may lose considerable market share during the transition.
Standard & Poor's also cut its rating on Nokia late last month.
(Editing by Jon Loades-Carter)
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Comments (1)
ulludapattha wrote:
Only Nokia’s CEO Stephen Elop is upbeat on Nokia’s Windows 7 phone’s future prospects. Today Gartner says Nokia, once the world leader in mobile phones, would be relegated to B- Series in this smartphone competition just managing to finish third after Google’s Android and Apple’s iPhone platforms by year 2016.
Now leading rating agencies Moody’s and S&P downgrade Nokia. Are these rating agencies totally wrong? Or is Nokia still living in its own dreamworld of former glory?
Apr 07, 2011 7:37am EDT -- Report as abuse
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