Nokia (NOK) Jumping Into Alcatel (ALU) Deal Could Pressure Corp. Ratings - Danske Bank
- Apple, Inc. (AAPL) Tops Q3 EPS by 5c, Sales Light
- Pre-Open Stock Movers 7/23 (PBYI) (ISRG) (BIIB) Higher; (XNLX) (MEET) (XOOM) Lower (more...)
- Dow Chemical Co. (DOW) Tops Q2 EPS by 3c
- Boeing Co. (BA) Tops Q2 EPS Views; Boosts FY14 EPS Outlook
- Biogen Idec, Inc. (BIIB) Tops Q2 EPS Views; Boosts FY14 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.
You May Also Be Interested In
- BofA/Merrill Lynch Downgrades Juniper Networks (JNPR) to Neutral
- Centene (CNC) PT Raised to $82 at Jefferies Post Q2
- Broadcom (BRCM) PT Lifted to $45 at BofA/Merrill Lynch
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!