Standard & Poor's considers downgrading Nokia credit rating

Feb 01, 2011
The Nokia logo seen in 2008. Rating agency Standard & Poor's said Tuesday it will be scrutinising the world's leading mobile phone maker Nokia over the next three months to decide whether to downgrade its short and long-term corporate credit ratings.

Rating agency Standard & Poor's said Tuesday it will be scrutinising the world's leading mobile phone maker Nokia over the next three months to decide whether to downgrade its short and long-term corporate credit ratings.

The agency said Nokia was placed on its "CreditWatch" list because the Finnish company's share of the converged mobile device market had slipped from 40 percent in the fourth quarter of 2009 to 31 percent in the fourth quarter of 2010.

"We expect to resolve the CreditWatch in the next three months, after discussing with Nokia's management the group's new strategy and timeline to improve its competitive position for converged and traditional mobile devices, near-term trading prospects, and medium-term business outlook," said Standard & Poor's credit analyst Matthias Raab.

Nokia's 2010 fourth quarter beat expectations, but the Finnish company's net profit of 745 million euros ($1.02 billion) was down steeply from 948 million euros a year earlier, on sales up six percent at 12.65 billion euros.

In addition, the company announced weaker-than-expected guidance for its first-quarter margins, said Standard & Poor's.

is expected to reveal more guidance for the medium and long-term in its capital markets day being held in London on February 11.

Last Friday, rating agency Moody's said it was also considering downgrading Nokia's long and short-term debt ratings.

Explore further: Amid scrutiny, Uber vows bigger focus on safety

add to favorites email to friend print save as pdf

Related Stories

Moody's lowers outlook on Nokia

Oct 26, 2010

Rating agency Moody's said Tuesday it had lowered its outlook on Finnish mobile phone maker Nokia to "negative" from "stable."

Nokia tops earnings forecasts

Jan 28, 2010

Nokia, the world's top mobile phone maker, surprised investors Thursday with a much better-than-expected 2009 performance after it resolved product problems, sending its share price soaring.

Strong sales not leading to mobile profits

Jan 26, 2006

Mobile-phone manufacturers are finding that global demand for handsets is almost insatiable, as consumers in wealthy countries flock to update their phones with the latest multi-functioning products, while those in poorer ...

Recommended for you

Underfire Uber ramps up rider safety

8 hours ago

Uber is ramping up driver background checks and other security measures worldwide after the smartphone-focused car-sharing service was banned in New Delhi following the alleged rape of a passenger.

Sony cancels NKorea parody film release after threats

9 hours ago

Hollywood studio Sony Pictures on Wednesday abruptly canceled the December 25 release date of "The Interview," a parody film which has angered North Korea and triggered chilling threats from hackers.

Sprint accused of billing for unwanted services

13 hours ago

(AP)—Federal regulators are accusing Sprint Corp. of illegally billing its wireless customers hundreds of millions of dollars in charges for text message alerts and other services that they didn't order.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.