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.
4/25/2012 8:03:15 AM
Sold out at a price of free with 2 year contract. HP sold a ton of tablets when they slashed their price.
"We shipped it on Saturday. Then on Sunday, we rested." -- Steve Jobs on the iPad launch
Windows Phone's First Hit: Nokia Lumia 900 LTE Sells Out
April 17, 2012, 12:16 PM
Quick Note: Pebble, Pebble Steel Smartwatches Reduced to $99, $199 Respectively
September 30, 2014, 3:59 PM
Report: Microsoft Lumia 830 Headed to AT&T on November 7
September 30, 2014, 12:51 PM
Update: Samsung Responds to Reports of Screen Gaps on Galaxy Note 4
September 30, 2014, 11:02 AM
Apple to Begin iPhone 6, iPhone 6 Plus Sales in China October 17
September 30, 2014, 9:55 AM
eBay to Spin Off PayPal Business Next Year
September 30, 2014, 7:28 AM
HP Adds $99 Windows Tablet, $199 Windows Notebook to Stream Family
September 29, 2014, 7:17 PM
Most Popular Articles
Appalling Negligence: Decade-Old Windows XPe Holes Led to Home Depot Hack
September 8, 2014, 8:58 PM
iBend: Reports Grow of Razor-Thin iPhone 6+ Folding Like Origami in Your Pocket
September 23, 2014, 6:08 PM
New AT&T Mobile Share Value "Double Data" Promotion Lasts Through October
September 28, 2014, 8:32 AM
Update: Apple Releases iOS 8.0.2 Update to Make Up for Botched 8.0.1 Release
September 25, 2014, 8:19 PM
TiVo Mega Features 24TB of Storage, Can Record Three Years* Worth of TV Content
September 8, 2014, 8:45 AM
Latest Blog Posts
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
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
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information