Moody's Downgrades Nokia (NOK) from Ba1 to Ba3
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Moody's downgraded the long-term senior unsecured ratings, the corporate family rating (CFR) and the probability of default rating (PDR) of Nokia Oyj (NYSE: NOK) to Ba3 from Ba1. The short-term senior unsecured ratings of Not-Prime were affirmed. The outlook on all ratings remains negative.
"Today's rating action reflects our view that Nokia's transition in the smartphone business will cause deeper operating losses and consequently cash consumption in the coming quarters than we had previously assumed," says Wolfgang Draack, a Moody's Senior Vice President and lead analyst for Nokia. "A return to profitability in the Devices & Services (D&S) segment on the back of smartphones with the Windows Phone 8 mobile operating systems is by no means assured," Mr Draack continues."
"Today's rating action reflects our view that Nokia's transition in the smartphone business will cause deeper operating losses and consequently cash consumption in the coming quarters than we had previously assumed," says Wolfgang Draack, a Moody's Senior Vice President and lead analyst for Nokia. "A return to profitability in the Devices & Services (D&S) segment on the back of smartphones with the Windows Phone 8 mobile operating systems is by no means assured," Mr Draack continues."
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