S&P: Nokia’s debt rating cut on weak margins

Standard & Poor’s lowered Nokia’s (OMX: NOK1V, NYSE: NYK) long-term debt rating to BBB- with negative outlook. This places Nokia’s debt just above junk status. The negative outlook means a further cut is possible if margins remain low and cash position weakens.

The transition period continues to be difficult for Nokia and expectations for first quarter are now very low. Nokia did not comment on Lumia sales in Barcelona or in subsequent events this week. There wasn’t a lot of love shown in Microsoft’s communications this week either. The stock lost its short-term support at 4 Euros and is now down below 3.9 Euros and is once again nearing important 5 Dollar level in the U.S.