The downgrades will increase Nokia’s borrowing costs. Standard and Poor’s based their decision on Nokia’s weaker-than-expected second quarter results, and uncertainty over the company’s future performance.
Nokia is in the process of developing a new line of smartphones based on Windows Phone software, after announcing in February that it would ditch its homegrown Symbian and Meego platforms.
The ratings agencies have noted that the time lag between announcing the decision and bringing new phones to market could affect Nokia’s income as it struggles to sell Symbian handsets.
Standard and Poor’s did predict that Nokia’s income would recover to 2010 levels by 2013, because it expects Nokia’s Microsoft partnership to ‘meaningfully improve the currently weak position of its smartphone portfolio.’
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Finland to toughen rape legislation
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Soini and SDP contest workers’ support
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Finnish Eurovision contestant: Kiss may have cost points
The ESC title remains in the Nordic region, but the Finnish entrant failed to attract much support.
Siegfrids hopes for Eurovision success
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Lions’ golden dream dies in Stockholm
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