Moody's slashes Nokia’s credit rating to junk
posted by Victor H. / Jun 18, 2012, 2:57 AM
Moody’s cut Nokia’s credit rating to “junk” status right after the Finnish phone maker announced it’s slashing 10,000 more jobs and expects loss to widen as Windows Phone sales devices are slow to get traction in sales and worries start to mount about how fast Nokia burns through its cash reserves. For Moody’s, the drastic downsizing of Nokia’s infrastructure indicates greater than expected problems at Espoo.
Moody’s is the last of the Big Three credit rating agencies to downgrade Nokia to "junk," after Standard & Poor’s and Fitch did the same nearly two months ago.
The credit agency now rates Nokia ‘Ba1,’ down from ‘Baa3,’ which speaks of significant credit risk. The downgrade also means that institutional investors like pension funds will turn their back on Nokia stock.
Additionally, over ten brokerages cut their price targets for Nokia shares. Nokia’s shares have lost 74% of their value since the company unveiled it will adopt Windows Phone as its main software platform in February 2011.
At the same time, Moody’s did see the restructuring as a necessary step for Nokia and praised the company’s commitment to radical restructuring. It still however sees the future as uncertain, depending on the transition to Windows Phone and the success of Nokia’s attempts to stabilize its feature phone sales.
Image courtesy of Junnu Lukkari.
Posts: 371; Member since: Jan 28, 2012
Only God knows what will happen to Nokia
posted on Jun 18, 2012, 3:02 AM 10
Posts: 3; Member since: Jun 18, 2012
You don't need God to know what inside nokia. You need an honest analyst/reporter to tell the truth to the whole world. like this: communities-dominate.blogs.com/brands/2012/06/the-final-reckoning-of-burning-platforms-memo-damaged-nokia-by-wiping-out-13b-in-revenues-and-destro.html this guy... Tomi Ahonen, is the most HONEST analyst in regards of Nokia problem. Read his blog, and you'll know MS is too evil to survive. this is the c&p from his blog. go to that link above to see the full article "The Final Reckoning: Burning Platforms Memo Damaged Nokia: Wiped out $13B revenues, Destroyed $4B profits in just 12 months I really hate doing this, these Nokia blogs make me so sad. But this is history, we have to record it, the facts have to stand. Yes, the Burning Platforms memo was released in early February of last year, but its true cost could not be calculated until now. Now, that we have seen four consecutive full fiscal Quarters of Nokia performance. So this is the Final Reckoning blog about the costliest management memo ever issued. The Burning Platforms memo plunged Nokia into an interminable crash-dive of its smartphone sales (a collapse that is still continuing today 16 months later) and cost Nokia in the immediate next four quarters - 12 months - a massive 13 Billion dollars of lost revenues, and 4 Billion dollars in profits wiped out. So lets examine the issue and call into court, the case of Nokia vs Elop."
posted on Jun 18, 2012, 5:41 AM 5
Posts: 325; Member since: Nov 27, 2010
i really wanted to buy an Android Nokia phone. free software, just mind the hardware... but they chose the expensive and iOS-like OS. i ended up buying Sony. now im looking forward to seeing the manufacturer i chose for my last 3 phones to fade away :)
posted on Jun 18, 2012, 3:25 AM 9
Posts: 253; Member since: Apr 10, 2012
Their arrogance will lead them to their grave :( Well, I have ended up with a Sony phone too and Android is quite flawless on the xperia s. wish nokia had adopted Android back when Galaxy S came!! Sad to see World's NO1 Mobile manufacturer die a slow death!
posted on Jun 18, 2012, 10:23 AM 2
Posts: 10; Member since: Jun 16, 2012
If they decided that making improvement on Symbian (touch user friendly interface - more resolution ) and making improvement on hardware ( ARM 9 - 8 Class Cpu's) they would be successful for now. With the old Symbian Nokia doing great in Europe and in Russia, Turkey, Middle East etc. But the new "CEO" decided to get some market share from North America and make Windows phone.?! That was a very big mistake and very obvious one... And no wp8 is not the nokia's last hope. Last hope for Nokia was Meego...
posted on Jun 18, 2012, 4:05 AM 6
Posts: 1268; Member since: Mar 30, 2012
Symbian Donna was expected to bring things like dual core, and 720p screen resolution and it would have been released this year
posted on Jun 18, 2012, 6:50 AM 1
Posts: 10; Member since: Jun 16, 2012
It is too late now because the Nokia CEO said that there will be no support for Symbian in the future. Now the main platform is windows phone :) Most sad part is, even at the beginning windows phone haven't got a global services but with Symbian Nokia had. After that if you said "no support" for your globally supported O.S that your sales will going down. I do not believe that Elop gave that decisions for a sake of Nokia's but he gave that decisions for a sake of Microsoft...
posted on Jun 18, 2012, 10:43 AM 2
Posts: 263; Member since: Jul 05, 2011
Nokia are committing commercial suicide by stubbornly sticking with Windows as their main platform. Everyone can see this except for a few Microsoft die-hards and the Microsoft mole himself Stephen Elop. I feel sorry for all the Nokia employees who will be losing their jobs due to the utter incompetence of Stephen Elop and Co.
posted on Jun 18, 2012, 4:58 AM 9
Posts: 1043; Member since: Apr 11, 2012
The ONLY hope they have is to switch to Android like NOW!...or be like BB :(
posted on Jun 18, 2012, 8:16 AM 4
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