Nokia responds to Moody’s downgrade

Nokia responds to Moody’s downgrade
Earlier today, 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.

Cash conservation remains a priority for Nokia in the current transition. We are making progress with our previously announced targets to reduce non-IFRS operating expenses by more than EUR 1 billion in Devices & Services, and to reduce non-IFRS operating expenses and production overheads by EUR 1 billion in Nokia Siemens Networks,” said the Finnish manufacturer in a statement today.

Timo Ihamuotila, Executive Vice President and CFO at Nokia also reiterated the company’s position by saying, “Nokia is quickly taking action. Nokia will continue to increase its focus on lowering the company's cost structure, improving cash flow and maintaining a strong financial position.

source: Nokia



27. carljhay

Posts: 1; Member since: May 08, 2012

Oh well, I never thought that Nokia will be downgraded because of its great performance but if the downgrade is based from a reliable source let's just accept the fact that even the greatest things do fail sometimes. Using things signifies that they may eventually bust. When and if they bust, you should think about downgrading your appliances, rather than replacing them. So don't replace, downgrade instead.

25. FoneAddict

Posts: 263; Member since: Jul 05, 2011

All you Microsoft fanboys are deluded if you can't see what Stephen Elop has done to Nokia. He is nothing but a Microsoft trojan. Nokia are constrained by what they can do because MS have put strict guidelines on hardware/software specs. Can someone please explain to me how Nokia has benefited from this alliance with Microsoft? Because to me it seems pretty obvious that Microsoft are in the driving seat and Nokia are simply taking orders.

16. DigitalJedi_X2

Posts: 346; Member since: Jan 30, 2012

I'm an Android fan. Just wanted full disclosure before I comment... Elop being an idiot aside(dumping Symbian then retracting the statement, burning memo, selling Symbian to Accenture) he is trimming the fat at Nokia. The thing is, it's the old guard that is to blame for Nokia's troubles. They were the ones who reacted far too slowly when Android and iOS came about. Same as RIM. Elop has made Nokia into a faster reacting, leaner company. So I'll give him that. Plus, the marketing for the Lumia line has been spot on. And while I LOVE my SGSII, I can't front on the Lumia 900. It's an amazing device and quite possibly the sexiest looking device out there right now. And yes, Windows 8 will make this a totally new ball game if what they say are true about it having desktop functionality on a cellphone. So before anyone passes judgement too quickly, let's take a wait and see approach. After all, Windows Phone is only, what?... A little over a year old? It is maturing faster than iOS and Android did at those exact points. Especially when you consider that Windows Phone 7.5/Mango is exactly where iOS 4.xx is now.

24. RobotMan

Posts: 145; Member since: Apr 13, 2012

If it not good now ( WP7.5 ) , why bother to buy when it is not confirm to be upgrade able. And all the WP supporter mention that WP is better then Android an ios but always said wait for WP8 that "will make this a totally new ball game" .

15. 7thspaceman

Posts: 1597; Member since: Feb 14, 2011

I donot believe the the Nokia lumia 900 is the Nokia 2012 flag ship smart phone the Nokia Windows 8 Model coming out later this year is their Flag ship smart phone because it will have the technology in it that will enable it to compete with the Iphone and the high end android smart phones. that is why even Verizon will have a very good Nokia Windows 8 smart phone out there to sell to their Verizon customers. it appears that verizon will try to sell at last a windows smart phones tHAT IS WORTH BUYING and will have at 100000 Apps including the ones most People wnat and use on windows smart phones. Windows 8 smart phones will have what it takes to be called a top smart phine althoough some will be sold with lower tech.for Nokia windows 8 smart phones are the make them or break them product. I predict they will survive.

23. RobotMan

Posts: 145; Member since: Apr 13, 2012

People want it now, not wait until WP8 and then WP9...WP10.

13. bragzter

Posts: 53; Member since: Feb 21, 2012

Symbian appeal was declining, true, but there was no reason to declare it a dead so early. How well does he expect the PureView to sell? He MeeGo was shot down before it even took off, stupid and terrible move. He did no marketing for it, and the N9 still sold well, because people fell in love it's design and the OS. But he said he doesn't care how well it sells. Why hand Microsoft the keys to your empire? Why couldn't he negotiate with Google too? Imagine Windows Phone, Android and MeeGo devices in the market together. Nokia will appeal to all consumers as they have the option of a solid device with an OS their desire. But Elop came from Microsoft, so it's obvious he give Windows Phone preference. Am just disappointed in Nokia

11. JSern

Posts: 282; Member since: May 22, 2011

Andoird can suck it


Posts: 4851; Member since: Apr 13, 2012

Apple is even worser....


Posts: 4851; Member since: Apr 13, 2012

2 NEW TROLLS IN HERE EXVAC AND JSERN i, we feel sorry for u both iBrainwashed jedi.....

26. Jeromeo

Posts: 135; Member since: Jan 11, 2010

The Lumia900 is nothing more than an HTC EVO years too late. And released these years later with a $100 price tag for the same hardware which is now free on Sprint and newly offered at a tremendous discount on Virgin Mobile. Stephen Elop claimed that dual/quad core processors eat up battery life. 3rd World, dumbphone Nokias marketed as actual competitors to iOS or Android phones, when sold at the same price level, eat up bank accounts, keep you from accessing Real App marketplaces, and pretend to have modern hardware when they're actually out of date.

6. aneelamdani

Posts: 20; Member since: Apr 16, 2012

carry on thinking about froyo to honeycomb :)

5. Tsepz_GP

Posts: 1227; Member since: Apr 12, 2012

Shame, didnt S&P also downgrade Nokia's credit rating from BBB to BBB- last month??? Their lack of innovation when excluding 808 PureView has brought them to this, they should have kept Meego and Symbian, but no, they dropped them for limited and crappy WP. LOL at the wait for WP8 comments, the very same was said about WP7.5 Mango by WP fanboys yet here we are many months later after 7.5 and now the excuses have shifted to WP8, cant wait til it arrives, then WP8.5 is what we'll be told will be the real blockbuster. :'D

4. aneelamdani

Posts: 20; Member since: Apr 16, 2012

just to clarify things, moody and their analytic are mostly not upto the mark, because if you know little bit of finance or investments, plus a know how of financial crisis, their greed made them succeed with profits. Second nokia has enough cash to make sure their operations continue, plus it should be noted the real fruits of NOKIA and MSFT partnership will fully benefit in windows 8, as it isnt anywhere far you should try relaxing , rather than asking elop to resign. And if you and your maid both have a galaxy SII then what the diffrence is there in both of your personality, like why not wash my dishes rather than orering elop to resign. Its about an ecosystem, how many apps you use daily, if you have spare time for your lifetime, you cant go on trying or finding 600,000 apps of your need. And last, i hope you dont wear same shirt dily or a single brand under your toes, make sure you are neutral while commenting on NOK or GOOGLE, because neither google is here to stay forever nor Samsung will keep on making eye candy for you.

8. RobotMan

Posts: 145; Member since: Apr 13, 2012

Nokia should have build both os like other manufacture. This is more logical then using only windows which did not have a lot of people supporting it. This is a very risky bushiness from the head of Nokia which is by the way is ex Microsoft.

10. eaxvac

Posts: 328; Member since: Jan 15, 2012

Again, you are hinting Nokia to use spydroid


Posts: 4851; Member since: Apr 13, 2012


14. Pdubb

Posts: 250; Member since: Aug 08, 2011

They did build use WP and MeeGo and now the Asha phones and they are still releasing updates to Symbian. They needed to focus on hardware and catch up with the others. They cannot bend to Google's will. Imagine how it would look if they were trying to build another skin for Android and waiting for Google to decide what they could do with it. It would be the same position that Samsung is currently finding itself. They release a stellar device only to find it to lapse behind, because they have to develop the OS again after it has been released or deemed ready by Google. They are in a similar place with MS but they are more of a partner with MS than just a company using the OS.

2. FoneAddict

Posts: 263; Member since: Jul 05, 2011

Terrible last few days for Nokia. First appalling Q1 sales figures and now this. Stephen Elop I hope you are proud of yourself! The Nokia board need to fire Stephen ASAP before it's too late. Then immediately ditch the MS platform and instead go with Google's Android. If Nokia do this I have utmost confidence that after a year Nokia will be in a much healthier position. Nokia hardware is PROVEN but Microsoft Windows Mobile is NOT. The irony is Microsoft Windows Mobile is proving to be the true Burning Platform.

17. lubba

Posts: 1313; Member since: Jan 17, 2011

You're funny! Nokia only been with MS less than year and a half. What make you think they do any better with Android considering they still have to start over fresh and also face against HTC, Samsung, and the other little players in the sea of Android OEMs. Wait a little. Remember Nokia is allowed some room to play with MS Os. See what happens in 4th quarter this year. And screw the analysts. They're fanboys just like any other.

1. RobotMan

Posts: 145; Member since: Apr 13, 2012

Microsoft will buy Nokia when the price is low enough. And this is maybe before Win8 is out.

3. cellphonator

Posts: 298; Member since: Oct 29, 2011

Dude what did you smoke today?

7. Jamus

Posts: 30; Member since: Feb 19, 2012

I smoked the lumia 900 today with my RAZR MAXX; not sure what he smoked.

12. cellphonator

Posts: 298; Member since: Oct 29, 2011

I shave with Razors, how the hell can you smoke, can you teach me?

9. eaxvac

Posts: 328; Member since: Jan 15, 2012

Here comes the typical fandroid troll


Posts: 4851; Member since: Apr 13, 2012

Here comes the typical iDoltary troll


Posts: 4851; Member since: Apr 13, 2012

True the way thing's are gooing look's like it! Stephen eflop love's bribes.....

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