Ratings agency Fitch has cut Nokia’s (OMX: NOK1V, NYSE: NOK) Long-term debt to BB+ and maintains negative outlook. The agency says this reflects the deterioration in the core Devices & Services devision earnings and general lack of visibility going forward.
Fitch says Nokia needs to show clear improvement in H2 2012 and onwards to avoid further cuts. Currently it doubts the company is able to do this. It fears there may be another dramatic decline in low-end smartphone and feature phone sales. A BB-level rating is described as speculative with an elevated default risk.
Nokia quickly responded with a comment restating the commitment to cash preservation and strong balance sheet. The stock has again moved another leg lower to trade at 2.65 Euros.
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