Printed from http://www.electronista.com

Moody's downgrades Nokia credit, Nokia insists it's strong

updated 10:05 am EDT, Mon April 16, 2012

Moody's down on Nokia prospects

Moody's on Monday downgraded Nokia's debt rating a level from Baa2 to Baa3. The credit rating giant based its decision on Nokia's lowered outlook and saw it as a reflection of longer-term, more systemic issues. The company was being pinched both at the low end, by a wave of very cheap phones and Chinese discounts, and at the high end by a "more challenging" transition where Symbian was falling faster than Windows Phone could replace it.

The credit firm was still optimistic that Nokia's aggressive pricing and marketing push would make Windows Phone the real third major mobile OS contender next to Android and iOS. However, the increasing dependence on the OS was reducing the sources of revenue Nokia could tap for growth, putting it at a greater risk.

The Finnish company might have to help bail out its related mobile networking venture, Nokia Siemens Networks, Moody's added.

Nokia in a response largely clung to the financial upside of the Moody's report, noting that its "financial position remains strong" as it keeps a good financial liquidity and foundation for capital. The company is focused on preserving as much cash as it can during the Windows Phone transition, which has included job cuts and reorganizing.

To improve its rating, Nokia needed to show that phones like the Lumia 900 could get "substantial" market share. Early signs have been positive, with early US sellouts, but the relatively modest initial supply and the brief inventory swap as a result of the missing data glitch have raised questions about Nokia's prospects.



By Electronista Staff
toggle

Comments

  1. Paul Huang

    Mac Enthusiast

    Joined: Sep 1999

    +8

    Like a drunk

    he or she always insists that he or she is not drunk.

  1. freddymac

    Fresh-Faced Recruit

    Joined: Jul 2010

    +3

    But

    we partnered with M$.... Everything is going to be fantastic... Just wait... You'll see...

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Asus Chromebook C300

When Chromebooks hit the market back in 2011, consumers didn't know what to do with them. The low-cost laptops, powered by Google's Ch ...

Plantronics BackBeat Pro Bluetooth headphones

Looking for a pair of headphones that can do everything a user requires is a task that can take some study. Trying to decide on in-ear ...

Lemur BlueDriver

"Oh no, the check engine light is on…again! What one of the hundreds of reasons could it be this time? Probably going to cost a fort ...

Sponsor

toggle

Most Commented

 
toggle

Popular News