Moody’s downgraded Nokia’s credit rating from a Baa2 to a Baa3. The ratings agency said that this action is in response to Stephen Elop describing Nokia’s Q1 sales as “disappointing”. Moody’s released a statement saying.
“Moody's believes that the structural challenges facing Nokia's mobile phones segment may not be easy to address, such as the market share gains recorded by makers of very low-end phones or new phone promotions by Chinese carriers.”
Nokia is set to report its first quarter earnings on April 19, 2012, but has fired off a statement in response to its downgrade.
Nokia maintains that its financial position remains strong. It claims that as of March 31, 2012, it had a gross cash balance of EUR 9.8 billion, and a net cash position of EUR 4.9 billion.
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