Standard & Poor’s today revised its credit outlook on Nokia (NOK) to negative from stable, and warned that the company’s rating could be downgraded in the next 12-18 months if the profitability of the company’s handset segment fails to recover over the next two quarters. For now, S&P maintains the company’s A long-term rating and A-1 short-term rating.
“The negative outlook reflects a material deterioration of the historically� industry leading margins of Nokia’s Devices and Services segment, a negative trend which began at the end of 2008 just after the onset of the recent global economic downturn, S&P analyst Matthias Raab said in a statement. “It also reflects our expectations that a material improvement in profitability could be hampered by intense competition for smart phones and traditional mobile phones, and also by Nokia’s rather weak competitive position for high-end smart phones.”
Earlier: Nokia: Bernstein Says The Stock Could Spiral Even Lower
NOK is down 9 cents, or 1%, to $8.61.
No comments:
Post a Comment