Nokia Credit Rating Cut to "Junk" Status by Fitch
April 24, 2012 11:44 AM
comment(s) - last by
Nokia credit rating downgraded by a third firm
You certainly don't have to be an analyst to understand that Nokia is sailing through rough waters. The mobile phone company is still one of the largest phone shippers in the world, but devices it ships tend to be low-profit mainstream handsets rather than high-end and profitable smartphones.
Nokia has recently had some success with its
, but that modest win isn't enough to turn around its fortunes.
This week, Fitch Ratings downgraded Nokia's credit rating to junk status. Fitch also said that the outlook for Nokia remained negative as market share continues to shrink. Fitch isn't the first to downgrade Nokia's credit rating either; the phone company has been downgraded by Standard & Poor's and Moody's as well. Nokia's ratings could be lowered even further if the company doesn't improve in Q2 2012 and beyond.
"Given the potential headwinds facing the company, Fitch is currently not convinced that Nokia can attain this over the course of 18 months," it said in a statement.
reports that Nokia issued a statement showing its cash position at $6.4 billion as of the end of March. Apparently, that was an attempt to show investors and analysts that the company is sitting on a cash stockpile despite poor market share.
"Nokia will continue to increase its focus on lowering the company's cost structure, improving cash flow and maintaining a strong financial position," Chief Financial Officer Timo Ihamuotila said.
Fitch believes that that cash reserve Nokia has right now could be completely depleted over the next 18 months thanks restructuring charges and negative cash flow. Nokia is taking a battering in the smartphone market because it has been unable to compete with high-end offerings from Apple and the hoards of Android smartphones available.
Nokia has hopes of turning around with this new smartphones such as the Lumia 900 on AT&T and other new devices coming this year.
This article is over a month old, voting and posting comments is disabled
RE: Convince dump, buy, then pump.
4/24/2012 12:36:40 PM
Where is this article?
Apple's Weak iPhone Sales an Ominous Sign for Earnings
Apple's (AAPL - News) coveted handset, announced it activated 4.3 million iPhones in the first quarter, a sharp decline from 7.6 million in the fourth quarter.
RE: Convince dump, buy, then pump.
4/24/2012 12:49:26 PM
I am no apple fan, but 4th quarter is always the biggest due to the holiday season, so it is better to look at how many iPhones were activated 1st quarter last year versus this year.
Also remember you got tons and tons of people upgrading to a 4s from a 4 or 3gs, and giving those older iPhones to friends and family (or selling them on craigs list/ebay) because they are still perfectly fine for most uses. Those don't count into apple sales, even if now those people will become iPhone users for the long haul.
I really like the 900, but I don't think it is a "killer" handset. I think perhaps when WP8 devices ship, I will make the move.
“And I don't know why [Apple is] acting like it’s superior. I don't even get it. What are they trying to say?” -- Bill Gates on the Mac ads
Windows Phone's First Hit: Nokia Lumia 900 LTE Sells Out
April 17, 2012, 12:16 PM
Microsoft's Standalone Kinect 2 Goes On Sale Oct. 7 for $150
August 28, 2014, 4:33 PM
Apple Builds Not-So-Secret Secret 3-Story Tower for iPhone 6/iWatch Unveil
August 28, 2014, 3:41 PM
Intel Offers up Penny Sized 3G Modem for Smart Appliances, Etc.
August 28, 2014, 3:25 PM
T-Mobile Will Also Carry the HTC One (M8) for Windows
August 28, 2014, 2:59 PM
Apple’s iPhone 6 to Get NFC Payment Capabilities, September 9 Event Confirmed
August 28, 2014, 11:43 AM
Samsung Announces Tizen-based Gear S Smartwatch That Can Make/Receive Phone Calls
August 28, 2014, 12:00 AM
Most Popular Articles
Microsoft's Surface 2 Tablet Family Gets a $100 Price Cut
August 25, 2014, 1:16 AM
Report: Microsoft to Announce Windows 9 on September 30
August 21, 2014, 11:20 AM
From HULC to FORTIS: the Evolution of Lockheed Martin's Incredible Exosuit
August 22, 2014, 12:45 PM
SpaceX Falcon 9-R Rocket Suffers Malfunction, Self-Destructs During Test Flight
August 23, 2014, 9:36 AM
Owner of "Decepticon" Maserati Ordered to Appear in Court This Thursday
August 25, 2014, 7:55 AM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information