Moody's slashed Nokia's credit rating to "junk" on Friday after the Finnish cellphone maker cut 10,000 more jobs and forecast a wider-than-expected loss, citing worries about its cash position and slow sales of new Windows phones. Equities analysts also cut their price targets on Nokia stock on fears the company would continue losing market share to Apple, Google and Samsung Electronics .
Moody's is the third ratings agency to relegate Nokia to non-investment grade status, which means many institutional investors such as pension funds will not buy its bonds. S&P and Fitch made similar moves in April.
Moody's also said Nokia may also have to contribute more capital or funding to Nokia Siemens Networks, its joint venture with Siemens, if the restructuring costs start to exceed cash flow from operations.
At least ten brokerages slashed their price targets on Nokia's shares, which have fallen more than 50 percent since the start of the year.
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