Nokia (NOK) Jumping Into Alcatel (ALU) Deal Could Pressure Corp. Ratings - Danske Bank
- Apple, Inc. (AAPL) Tops Q2 EPS by $1.44; Announces 7-for-1 Stock Split
- Market Wrap: Big Earnings Galore; Amazon, HBO Enter Agreement; GE Eyes French Industrial Giant
- Facebook (FB) Tops Q1 EPS by 10c
- After-Hours Stock Movers 4/23: (ANGI) (AAPL) (FB) Higher; (HEAR) (TNP) (IM) Lower (more...)
- Qualcomm, Inc. (QCOM) Tops Q2 EPS by 9c; Guides Q3 to Low-Side of Consensus
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.
You May Also Be Interested In
- FBR Capital Downgrades Flagstar Bancorp (FBC) to Market Perform; Removes from 'Top Picks' List
- VMware (VMW) Q1 'Not as Good as it Looks' - Nomura
- Intuitive Surgical (ISRG) Q1 'a Bust' - Northland Capital Markets
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!