S& P slashes Nokiaalt39s ratings

FPJ BureauUpdated: Sunday, June 02, 2019, 01:54 AM IST
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Helsinki

Rating agency Standard and Poors downgraded Finnish cellphone maker Nokias long- term corporate credit rating to BB-, from BB+, citing the likelihood of the companys deteriorating profitability.

S& P also lowered the

issue rating for the groups unsecured debt also to a BBfrom a previous BB+ rating.

Nokia CFO Timo Ihamuotila said the impact of the rating agencys decision on Nokia was ” limited.” ” As we continue our transition, we are applying a strong focus on cash conservation while simultaneously reducing our operating costs and making our operating stronger and more agile,” Ihamuotila said in a statement.

The ailing company has been fighting fierce competition from Apple Incs iPhone and other makers using Google Incs popular Android software, including Samsung Electronics Co and HTC of Taiwan, and is also being squeezed in the low- end by Asian manufacturers making cheaper phones, such as Chinas ZTE. Last month, Nokia reported a 19 per cent in sales and a net loss of 1.4 billion Euros for the second quarter. The decision by S& P follows three separate downgrades by rival ratings agency Moodys since April.

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