Nokia confident for future as Moody's confirms downgrade

Nieuws Mobiel Wereld 23 AUG 2013
Nokia confident for future as Moody's confirms downgrade
Credit rating agency Moody's has downgraded Nokia's corporate family rating (CFR) and probability of default rating (PDR) to B1 and B1-PD from Ba3 and Ba3-PD respectively. The action ends the review for downgrade announced in early July and incorporates the company's recent results and the financing arranged for the EUR 1.7 billion acquisition of a 50 percent stake in Nokia Solutions and Networks (Nokia Siemens Networks or NSN). The outlook on all ratings is negative. 

Nokia executive VP and CFO Timo Ihamuotila responded to the news by saying that the company was pleased with its strong cash position and Lumia volume growth in the first half of the year. The CFO said Nokia was looking forward to driving further share gains and that it wants to return its Devices & Services business to sustainable cash generation as soon as possible. 

At the end of the second quarter and before closing the NSN transaction, Nokia had gross cash at EUR 9.5 billion and net cash at EUR 4.1 billion. The company added that it still has a revolving credit facility of EUR 1.5 billion which is undrawn and available. NSN also has a EUR 750 million revolving credit facility that is undrawn. 

Categories:

Mobiel

Companies:

Nokia,  Nokia Siemens Networks

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Wereld

Tags:

Corporate strategy, Market research

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