Nokia (NOK) Jumping Into Alcatel (ALU) Deal Could Pressure Corp. Ratings - Danske Bank
- UPDATE: Hewlett-Packard (HPQ) Reports In-Line Q4 EPS; Guides Q1, FY15 EPS
- Market Wrap: GDP Stronger than Expected in Q3; Falcone Departing Harbinger; House Prices Flat in Sept.
- After-Hours Stocks Movers 11/25: (VEEV) (BLOX) (ADI) Higher; (VNET) (CTRP) (PWRD) Lower (more...)
- Veeva Systems (VEEV) Tops Q3 EPS by 1c, Q4 Guidance Tops Views
- Signet Jewelers (SIG) Tops Q3 EPS by 3c; Guides FY15 EPS Above Expectations
Danske Bank’s Louis Landeman, during a recent interview, said Nokia and Alcatel in a tie-up would hamper the positive momentum that Nokia is seeing in its credit ratings. The outcome might be slight downgrade or stabilization at current levels.
Currently, S&P, Fitch, and Moody's all have Nokia's credit ratings under review following recent M&A activity. Landeman thinks that it is unlikely that the ratings agencies will take action before the company is done with its strategic review.
Nokia spreads might widen depending on how a deal is structured. Right now, Alcatel's ratings are vulnerable given that it is going through a major restructuring and is having trouble generating stable free cash flow.
Moody's is at B1, Fitch is at BB-, and S&P is at B+ on Nokia. Shares are indicated lower Thursday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Apple (AAPL) PT Raised to $130 at Stifel
- Goldman Sachs Removes SunCoke Energy (SXC) from CL-Buy List (Earlier)
- UPDATE: Citi Upgrades Petrobras (PBR) to Buy
Create E-mail Alert Related CategoriesAnalyst Comments, Credit Ratings
Related EntitiesStandard & Poor's
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!