Nokia (NOK) Jumping Into Alcatel (ALU) Deal Could Pressure Corp. Ratings - Danske Bank
- Top 10 News for 10/20 - 10/24: Apple Ramps on Results; Loeb Eyes Amgen; Advanced Technologies Exits Sapphire Game
- Procter & Gamble (PG) Reports In-Line Q1 EPS; To Spin-Off Duracell
- Dallas Ebola Nurse Nina Pham now cured - NIH Says
- Ford Motor (F) Tops Q3 EPS by 5c
- SodaStream (SODA) Confirms 'Small-Scale' PepsiCo (PEP) Test
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
- UPDATE: Credit Suisse Downgrades KLA-Tencor (KLAC) to Neutral - Correct
- BofA/Merrill Lynch Downgrades Informatica (INFA) to Underperform
- Celgene (CELG) Revlimid Estimates, PT Lifted at Nomura
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!