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Nokia faced its third credit rating cut in a month on Friday in signs of a further confidence problem. Standard & Poor dropped Nokia's rating to junk status based on a shortfall in cash strength. While its existing cash was a "positive factor," the firm said, it expected the phone designer's cash to drop from a predicted 4.9 billion euros ($6.5 billion) to no more than four million euros ($5.3 billion).
Standard & Poor on Tuesday dropped its outlook on Nokia's credit rating from "stable" to "negative" due to its expected poor results. The stock indexer warned that Nokia's core phone business needed to regain more of its profitability over the next six months or else its credit rating could be downgraded within the next 12 to 18 months. It wasn't optimistic as it saw that Nokia was still in a "rather weak competitive position" for smartphones.