moody's | Windows Central

What could've been

This is Microsoft’s original vision for the Lumia 950 series

All in on AI

Did Microsoft shift to an AI-focused strategy because of Google?

Clamshell vs. Kickstand

Surface Laptop vs. Surface Pro: Spec showdown and form factor wars

Windows Central Digital Offers

Break into a cybersecurity career with this $69 certification bundle!

Microsoft vs Dell

Quick comparison of the new Surface Pro and Dell's XPS 15

Both great devices

Does the new Surface Pro really edge out the cheaper Surface Pro 4?

All the apps

Hey you! Don’t forget about all of Windows Central’s apps.

Microsoft mixes up Beam

Microsoft's 'Beam' service is getting a rebrand, say hi to 'Mixer'

Star Wars hits the big 4-0

Celebrate Star Wars' birthday with these great gifts!

Pro vs. Laptop

Should you buy Microsoft's Surface Pro or Surface Laptop?

Love/hate relationship

8 things you'll love about new Surface Pro – and 3 things you'll hate

Monkey see monkey do

Is Microsoft's Fluent Design a clone of Google's Material Design?

Surface FTW

Surface Pro beats iPad Pro in a tech spec comparison — by a mile

Cast your vote ...

Will you buy Microsoft's new Surface Pro? (poll)

The pinnacle of Surface

Why isn't the new Surface Pro named 'Surface Pro 5?'

Stay cool look cool

Introducing the new Windows Central 'Colors T-Shirt,' now ready to order!

Missing the future

Why Microsoft's new Surface Pro doesn't have a USB Type-C port

All new for 2017

Meet the new Microsoft Surface Pro!

Tilt and shift

New Microsoft Surface Pen: Everything you need to know

Spec showdown

Which is the best? Surface Laptop vs. Spectre x360 vs. XPS 13

< >

Pre-order: Surface Laptop | NEW Surface Pro


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.

More →

Today, credit-rating agency Moody's, cut Nokia Oyj's debt rating to the lowest investment-grade level.  This comes on the heels of Nokia's announcement last week that they would be posting a 3 percent loss this quarter and would likely see a loss in Q2 as well.  Citing deteriorating sales of low-end phones, Moody's dropped Nokia's debt rating one step, to Baa3, with a negative outlook, which means that the rating could be lowered even further, if things don't pick up for the Finnish manufacturer.  Moody's decision affects an estimated $5.2 billion in debt and puts their rating more in line with those of Standard & Poor and Fitch, who were much quicker to lower their ratings.

“Moody’s believes that the structural change 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 promotions by Chinese carriers,” Moody’s analyst Wolfgang Draack said in the statement.

The change in Nokia's rating has obviously affected the company's stock.  Shares have been trading down 2.4% in Helsinki and credit-default swaps jumped to a record-high 516, up from 354 at the beginning of April.

In a press release that was put out soon after the Moody's announcement, Nokia Executive Vice President and CFO, Timo Ihamuotila, said that “Nokia is quickly taking action. Nokia will continue to increase its focus on lowering the company's cost structure, improving cash flow and maintaining a strong financial position.”  Nokia also tried to reassure people by noting that Nokia has approximately 4.9 billion Euros ($6.4 billion) in cash reserves.

Nokia's Lumia line of Windows Phone devices is selling well, especially the wildly popular Lumia 900, which has seen strong sales.  Stephen Elop, CEO of Nokia, has said that he and his mates continues "to increase the clock speed of the company."  Nokia is slated to break ground on a new factory in Vietnam, which is expected to start churning out low-end phones in 2013, a year behind schedule due to stalled negotiations with the Vietnamese government. 

Source: Moody's, Nokia; Via: Bloomberg

More →