Feeds

Microsoft fingered for Nokia's bleak future

Shares fall on ratings downgrade

Boost IT visibility and business value

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. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Déjà vu: Virgin Media jacks up broadband prices
Screw copper phone lines, we're UNIQUE, bleats telco
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
Fifteen zero days found in hacker router comp romp
Four routers rooted in SOHOpelessly Broken challenge
New Sprint CEO says he will lower axe on staff – but prices come first
'Very disruptive' new rates to be revealed next week
US TV stations bowl sueball directly at FCC's spectrum mega-sale
Broadcasters upset about coverage and cost as they shift up and down the dials
UK mobile coverage is BETTER than EVER, networks tell Ofcom
Regulator swallows this line and parrots it back out at us. What are they playing at?
What's the nature of your emergency, Vodafone?
Oh, you've dialled the wrong number for ad fibs, rules ASA
EE network whacked by 'PDP authentication failure' blunder
Carrier is 'aware' of cockup, working on a fix NOW
ROAD TRIP! An FCC road trip – Leahy demands net neutrality debate across US
You crashed watchdog's site, now time to crash its ears
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.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.