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.

"We are pleased that the strong cash position we have maintained throughout our transition has enabled us to take advantage of an opportunity to acquire full ownership of NSN, whose financial performance has strengthened markedly in recent quarters. In Devices & Services, we are pleased with the Lumia volume growth we delivered in the first half of this year and are looking forward to driving further share gains for the ecosystem. With these efforts our target is to return our Devices & Services business to sustainable cash generation as soon as possible."

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.

Source: Nokia

Rich Edmonds
Senior Editor, PC Build

Rich Edmonds is 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 over on Twitter at @RichEdmonds.

  • You got to be a complete dumb as to choose some entry level iPhone 5c over a Lumia device..
  • Yup, I am using a Lumia 521 on T-Mobile, and at $80 full retail, you cannot get anything better.
  • Why?
  • Because of bang for the buck❕
  • Not everyone wants the bank for the buck experience. I enjoyed my 521 but the screen resolution drove me to a 925. 
  • The iPhone 5c is the cheap version of the iPhone.  He's saying for the price, the lower end Lumias are far better.
  • Yeah, I can read, since details and pricing are not known about this new Iphone, his statement might be wrong, or at least for now unprovable.
  • Counting on the iPhone 5 currently offers less overall than higher end Lumias, and the 5S isn't going to be a huge jump in innovation, or specs,,, you can count on a budget iPhone to include even less than that.. And at a already reported price of $299 it's safe to say that the Lumia 520, 620, 625, 720, and 820 have much more BFTB❕.. Apple will not be able to compete with the 520, 521, this time around... Their budget phone is still just to expensive for emerging markets, Latin America, China, and India... Nokia will make serious gains in 2014 taking away market share from Apple... Did you just join WPC❔
  • Do you honestly believe that Apple will price their so-called "cheap" iPhone at the low level of the 521?!! If the 5C gets priced at $80, then must be the end of the world - or of Apple!
  • Who says the "5c" will be $80.. There's no way... Maybe $150 on contract if the iChildren, and iGeezers, are lucky.
  • The 925 is exactly what I'm talking about when I say "Bang for the buck"".... For the price the 925, and every other WP device, does more performs better, and is higher quality than its direct competitors...
  • If only the market agreed. There are some very annoying software issues and the recent blue screen posts here hopefully are addressed quickly. Before moving to Tmobile I had a 928 on Verizon and other than the weight it was a good phone. Especially built in wireless charging.
  • Wow❕.. You are the most clueless WP Fan ever.. You don't understand what BFTB means, and worse you don't understand when you're being made fun of by others... Hopeless..
  • What is it like to be ubercool?? Making fun of people is so jr high :)
  • Get over it❕... Dude look.. We WP fans understand that our devices perform equally, or better, have just as many features, or more, are just as innovative, or more, and are just as good of quality, or better, than iPhones, or Android, devices... The fact that they can do all of this for equal, or less, the cost of a iPhone, or Android device, means that WP devices have more "Bang for the Buck"... It means you get more device for your money... And, I'm speaking of WP devices as a whole compared to Android devices, and iOS devices... You are trying to compare the 521, 928, and 925, and that has completely nothing to do with my original comment about Apples supposed entry level device that is to come out... My point, from the beginning, was that for the rumored price of what you will get a entry level iPhone at it will still cost more than a comparable WP device, and may still have less features.. Furthermore, supposedly Apple isn't to reveal a phone that is comparable to the 520/521 in terms of price, so the iPhone 5c still will not overtake WP in emerging markets, and markets like China, and India... I didn't know that I would have to give anyone on here a history of WP lesson tonight.... Bank for the Buck,,, what the hell is that❔
  • Your postings are proof of a great quote
    Paul Thurrott:
    Not now mom, somebody is wrong on the internet.
    Too funny 
  • Are you from earth❔ Are you sure that's not a Android device in your hands❔You do know this is WPCentral, and not iMore, right❔Either you are extremely new to WP, this site, and the tech world,, you hate WP, or you're just plain crazy... Wait a minute,, is this a joke❔
  • I'll take the bank over the buck anytime! LOL
  • yup :)
  • Oh look, he has an opinion.
  • Who are you talking about❔
  • Guys, this is old news already :)
    And when it comes to these rating agencies, this article tells a lot how credible they are:
    So basically, they are admitting that only a fool takes their actions seriously.
  • When Goldman Sachs and Morgan Stanley had Nokia rated as a "sell", back when the stock was below $3, they increased their holdings by almost 90%. Morgans Stanley increase their holdings by more than 700%.
    So when they were yelling "SELL! SELL! SELL!" they were buying up all the cheap stock that suckers who listended to them were selling.
    Officially they will claim that it shows a sufficient separation between their advising arm and investment arm, that the two divisions disagree (they have operate independantly for legal reasons), but in reality it's profittering at its best.
  • With my limited knowledge of economy, even I know that you should buy it whenever they tell you to sell. So I don't think that it had any effect.
  • Why are countries and companies still giving power to those thieves at the rating agencies is something beyond my understanding.
    Let us remind that Moody's rated AAA the Lehman Brothers...right before they went bankrupt and dived the Western World into a profound economical crisis.
  • Fuk rating agencies and all the crap they say!!!!
  • Fuk them rating
  • Yeah, fuk math and all that ;)
  • when the ratings agencies and major investment houses say sell, that's when you buy.
  • A well known fact and works in all markets.
  • Who cares about those agencies? I am lawyer and also have some stocks on my country, Brazil. After the 2008, all these agencies, including Moody's and Standard, lost their credibility. These agencies in that time gave AAA to many banks and other companies, that almost broken. The U.S goverment provided all the aid, because those agencies were blind enough to see the bubble. So, as for me, my country raised levels last two years by all the three big ones, but I still see Brazil as a bad investment right now. Those agencies by far doesnt offer any true and real understanding of the situation.
  • Why is Brasil a bad investment right now?
  • Rating agencies suck. But one day there could be a situation when MS - i don't see others, not even chinese investors - has to go in.
  • In that their handset business still isn't making money yet and they're, allegedly, about to enter a new business (selling tablets/PCs) that will likely require a lot of money in advertising/marketing/promotion it's not a business in the strongest of positions. Is it?
  • I'm pretty sure the executives at Moody who made this decision are either iphone or android fanboys
  • Any an all credit rating agencies are suspect, because they have a vested interest in selling the results of their proprietary, black-box algorithms.
    Businesses and individuals alike would benefit from an open-source type of rating system, so that not only would everyone know where they stand, but why the results are what they are and how to improve their own ratings.
  • We don't care about these crap rating agencies. Nokia give us more phones like Lumia range, we are with you
  • Somebody just wants to grab ahold of Nokia's stock pie as cheap as possible.
    "rating agencies" will get their slice.
  • Whats the latest update on Nokia-After-MS-Takeover? 
    What is the balance of Nokia with NSN Real value?
    Who will pay the Nokia-India Tax millions?
  • With Death Bells - "Worries That Microsoft Is Growing Too Tricky to Manage", is the MS-Nokia honeymoon over?
    MS Warning Signs of MS share price collapsing and dumping Nokia to garbage? …