Nokia hits new low as Moody’s slashes rating

 
City A.M. Reporter
RATING agency Moody’s dealt a fresh ratings blow to Nokia yesterday, dragging its shares to their lowest level in 15 years and reflecting the Finnish handset maker’s struggle to compete with Apple and Samsung.

Moody’s cut Nokia’s long-term credit rating to Baa3, one level above speculative grade, sending the battered shares to a historic low of €2.948. Standard & Poor’s announced a similar downgrade in March.

The shares have been on a declining trend since a profit warning last Wednesday, when Nokia said that it would post losses for the first and second quarters.

“Moody’s believes that the structural challenges facing Nokia’s mobile phones segment may not be easy to address, such as the market share gains recorded by makers of very low-end phones or new phone promotions by Chinese carriers,” the US ratings agency said.

Nokia defended its financial position, saying it had gross cash balances of €9.8bn and a net cash position of €4.9bn as of 31 March.