Feeds

Microsoft fingered for Nokia's bleak future

Shares fall on ratings downgrade

Top three mobile application threats

Nokia shares are down slightly today on news that ratings agency Fitch has downgraded the company's lending rating from BBB+ to BBB-.

Fitch reckons the situation is bad and getting worse for the once-mighty Finnish firm.

The rating agency also set the outlook for Nokia to negative. The rating impacts Nokia's long-term bonds - usually the cheapest way for big firms to borrow money. The rating means investors like pension funds will not be allowed to buy the debt.

Stuart Reid, Senior Director in Fitch's TMT team in London, said: "The pace of deterioration has picked-up since Nokia decided to switch to an alternative operating system and it appears consumers are deserting these legacy handsets for cheaper Android (Google's operating system) versions or high-end Android or Apple smart phones."

The agency said it was worried by the long wait for "a tested new product portfolio based on the Windows operating system... only expected to be in place well into 2012."

Fitch said it recognised Nokia's strong cash reserves but warned: "Mature companies in fast-moving sectors can feel threatened to rapidly spend accumulated cash in a number of ways when faced with step changes in market-share dynamics."

It said Nokia could only expect a rating improvement with positive market reaction to Windows-products and improvements in underlying margins which were down to 6.8 per cent in the first quarter from 8.6 per cent last year. ®

Combat fraud and increase customer satisfaction

More from The Register

next story
Virgin Media so, so SORRY for turning spam fire-hose on its punters
Hundreds of emails flood inboxes thanks to gaffe
A black box for your SUITCASE: Now your lost luggage can phone home – quite literally
Breakfast in London, lunch in NYC, and your clothes in Peru
AT&T threatens to pull out of FCC wireless auctions over purchase limits
Company wants ability to buy more spectrum space in auction
Turnbull leaves Australia's broadband blackspots in the dark
New Statement of Expectations to NBN Co offers get-out clauses for blackspot builds
Facebook claims 100 MEEELLION active users in India
Who needs China when you've got the next billion in your sights?
Facebook splats in-app chat, whacks brats into crack yakety-yak app
Jibber-jabbering addicts turfed out just as Zuck warned
Google looks to LTE and Wi-Fi to help it lube YouTube tubes
Bandwidth hogger needs tube embiggenment if it's to succeed
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.