sp downgrades nokia further into junk status
Last Updated : GMT 08:21:11
Arab Today, arab today
Arab Today, arab today

S&P downgrades Nokia further into junk status

Arab Today, arab today

Arab Today, arab today S&P downgrades Nokia further into junk status

Helsinki - Arabstoday

Rating agency Standard and Poor\'s yesterday downgraded Nokia Corp.\'s long-term corporate credit rating further into junk status amid concerns over the cellphone company\'s deteriorating profitability. While cutting its rating on Nokia by two notches to BB-, S&P warned there could be further downgrades as it slapped a negative outlook on the company. For S&P, anything below BBB- is considered junk status, or not investment grade. That means S&P thinks Nokia is a speculative investment and will likely make it more expensive for the company to raise money in capital markets. S&P also lowered the rating for the group\'s unsecured debt — also to a BB- from a previous BB+ rating, saying that Nokia\'s second-quarter results and guidance had been lower than expected. \"The negative outlook reflects the possibility of another downgrade if Nokia fails to stabilize its margins and significantly cut its cash losses,\" the agency said. \"We now assume that Nokia\'s smartphone operations will post lower revenues than we previously anticipated over the coming quarters.\" Last month, Nokia reported a 19 percent drop in sales and a quadrupling of net loss to a record 1.4 billion euros ($1.8 billion) for the second quarter. Nokia CEO Stephen Elop also said the third quarter would \"remain difficult\" as the phase-out of Symbian-based phones continues in favor of the Windows operating system that Nokia adopted after joining forces with Microsoft Corp. last year. The ailing Finnish firm has been fighting fierce competition from Apple Inc.\'s iPhone and other makers using Google Inc.\'s popular Android software, including Samsung Electronics Co. and HTC of Taiwan. It is also being squeezed in the low-end by Asian manufacturers making cheaper phones, such as China\'s ZTE. Nokia CFO Timo Ihamuotila said the impact of S&P\'s decision on Nokia was \"limited.\" \"As we continue our transition, we are applying a strong focus on cash conservation while simultaneously reducing our operating costs and making our operating model stronger and more agile,\" Ihamuotila said. It was S&P\'s second Nokia downgrade since April. Moody\'s has downgraded Nokia three times since April and Fitch dropped Nokia to junk status four months ago. Nokia was the world\'s leading mobile phone maker for more than a decade but was overtaken by Samsung in the first quarter, according to research firm Gartner. Nokia has said that it expected a difficult transition period from Symbian and Meego platforms to the Windows operating system. Last month, it reported that the decline of Symbian phones dragged down sales in all regions expect for North America, where the decline was \"more than offset\" by sales of the Windows-based Lumia devices. Nokia said it sold 4 million Lumia phones worldwide in the quarter — double the amount in the first quarter. Nokia\'s global market share has steadily shrunk from the peak of 40 percent in 2008 to 29 percent in 2011 and is expected to dwindle further this year. Its shares have fallen to their lowest level since the 1990\'s, plunging below 2 euros in mid-June. On top of previous job cuts Nokia said in June that it will slash 10,000 jobs and close down research and development facilities in Germany and Canada, as well as its main manufacturing plant in Salo, Finland. Nokia aims to save 1.6 billion euros through these measures by the end of next year. In June, Espoo-based Nokia employed 113,000 people, down 18 percent on a year earlier. Despite the latest downgrade, Nokia\'s share price closed up more than 3 percent at 2.08 euros ($2.55) on the Helsinki Stock Exchange.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

sp downgrades nokia further into junk status sp downgrades nokia further into junk status

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

sp downgrades nokia further into junk status sp downgrades nokia further into junk status

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Japanese regulators raid Airbnb

GMT 00:44 2017 Monday ,20 November

Japanese regulators raid Airbnb
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Saudi, Bahrain target Iran

GMT 00:48 2017 Monday ,20 November

Saudi, Bahrain target Iran
Arab Today, arab today Europe turns on Facebook, Google

GMT 02:26 2017 Monday ,20 November

Europe turns on Facebook, Google
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Driverless, electric future just round

GMT 02:45 2017 Monday ,20 November

Driverless, electric future just round
Arab Today, arab today Tesla unveils its all-electric semi truck

GMT 02:59 2017 Saturday ,18 November

Tesla unveils its all-electric semi truck
Arab Today, arab today Mona Abdel Ghany increased artistic activities

GMT 12:15 2017 Friday ,17 November

Mona Abdel Ghany increased artistic activities
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 12:22 2017 Thursday ,16 November

Hanan Metawe denies apology for “Major Treason”

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 02:28 2017 Saturday ,18 November

Anti-drug operation nets 4 tonnes

GMT 01:34 2017 Friday ,17 November

Banyan Tree Phuket Takes Festive Season

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday