Moody's issues credit warning on NokiaJuly 19, 2013 @ 9:03 am
HELSINKI (AP) - Moody's Investors Services says Nokia Corp.'s second quarter earnings are credit negative, citing a continued drop in sales.
The ratings agency already has Nokia on review for downgrade, so Friday's warning suggests a move is more likely. The agency expects any downgrade to be limited to one notch.
It said it is particularly concerned about how quickly Nokia, which posted a 227 million euro loss for the quarter, is burning through cash.
It noted Nokia's net cash would likely fall to 1 billion euros after the purchase of Siemens' stake in Nokia Siemens Networks, a telecommunication systems venture. That would be below the 1.5 billion euros necessary to maintain the current Ba3 rating.
Once the world's largest maker of mobile phones, Nokia has struggled to compete in the smartphone segment.
(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
Out of Character
Richard Sherman's post-game silence draws criticism
Warm Fall, Winter
Forecasters predict a warmer fall and winter than normal
What Was That?
Reports continue streaming in after a fireball streaked across our skies
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.