Feeds

Microsoft fingered for Nokia's bleak future

Shares fall on ratings downgrade

Designing a Defense for Mobile Applications

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. ®

HP ProLiant Gen8: Integrated lifecycle automation

More from The Register

next story
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
Bring back error correction, say Danish 'net boffins
We don't need no steenkin' TCP/IP retransmission and the congestion it causes
GoTenna: How does this 'magic' work?
An ideal product if you believe the Earth is flat
Samsung Z Tizen OS mobe is post-phoned – this time for good?
Russian launch for Sammy's non-droid knocked back
Telstra to KILL 2G network by end of 2016
GSM now stands for Grave-Seeking-Mobile network
Seeking LTE expert to insert small cells into BT customers' places
Is this the first step to a FON-a-like 4G network?
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.