Nokia responds to Moody's rating downgrade of the company on cash flow concerns
Nokia was dealt a blow by Moody's Investors Service, a substantial downgrade after the company purchased Siemen's share of the Nokia Siemens Networks (now Nokia Solutions and Networks). The company was lowered one level to B1 with a rather negative outlook stated by Moody's. Nokia executive VP and CFO, Timo Ihamuotila, today commented on the rating decision.
Nokia is in a difficult position and has been since the company chose to switch to Windows Phone and work with Microsoft on a brand new mobile platform. We've covered the continued release of financial reports that began to show signs of improvements being made, but not at a speed to please those who are sceptical about the company's future. NSN has become profitable, which Nokia will at least take full advantage of.
The statement notes that Nokia has access to additional liquidity via a revolving credit facility of 1.5 billion euros, which is entirely undrawn and available to the company through March 2016. As well the above, NSN has a 750 million euro revolving credit facility, also entirely undrawn and available through June 2015.
Nokia will look at further expanding NSN and working with Microsoft and partners to build on its current line of Lumia hardware. Let's not forget some upcoming Windows tablets too.
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Rich Edmonds was formerly a Senior Editor of PC hardware at Windows Central, covering everything related to PC components and NAS. He's been involved in technology for more than a decade and knows a thing or two about the magic inside a PC chassis. You can follow him on Twitter at @RichEdmonds.