Nokia (NYSE:NOK) had its senior debt rating cut by Moody's (NYSE:MCO) from "A3" to "A2," along with a negative outlook on the company based on its declining position in mobile devices.
While the ratings are still investment grade, it will affect approximately $7.6 billion.
Moody's noted that Nokia inflexible smart phone operating system, slowness in introducing new models and more attractive innovation by competitors has brought the company to where it's at today.
They did say Nokia CEO Stephen Elop is starting to take steps to address the issues, but that will take time.
"In the short term, however, Moody's expects a significant degree of uncertainty about the financial impact on Nokia of the transition and about the level of eventual acceptance of the Windows Phone device offering," the ratings agency said.
Nokia Was trading at $8.95, dropping $0.07, or 0.78 percent, as of 11:32 AM EDT.
Thursday, April 7, 2011
Nokia (NOK) Debt Downgraded by Moody's (MCO)
Labels:
Moodys,
Nokia,
Stephen Elop,
Windows Phone 7
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