S&P cuts key Nokia ratings
New York, July 6, 2013
Standard & Poor's downgraded Nokia further into junk territory, warning that the Finnish telecom firm's plan to take over Siemens' stake in their joint network equipment venture would strain its finances.
The ratings agency downgraded the one-time tech darling by one notch to B+ from BB- citing pressure on its net cash after Nokia said on Monday it would buy Siemens' 50 per cent share in Nokia Siemens Networks.
Nokia is betting on the technology to run 4G networks as it struggles in the smartphones business. But the buy-out strains a balance sheet already under pressure from a loss-making handset business, which could burn through its cash as soon as next year.
"We now anticipate Nokia's net cash could be as low as 1.3 billion euros ($1.6 billion) at the end of 2013," S&P said.
The stable outlook assumes a significant reduction in cash losses and gradual market share improvement, S&P said.
In a comment on the S&P move, Nokia said its gross and net financial position remained strong, and noted it also had access to additional cash via an undrawn credit facility.
"We will continue to prudently manage our cash resources post-transaction," Nokia said on its website.-Reuters
More IT & Telecommunications Stories
- Scope ME named distributor for InfoWatch
- Nawras quadruples 3G+ mobile services
- Menatelecom expands bill paying network
- Du joins new global cable consortium
- Kuwait moves to create telecoms watchdog
- Batelco backs Royal Fund for Martyrs
- Egypt's Global Telecom posts $749m Q4 loss
- Red Hat launches open source BPM suite
- Batelco announces new board
- Batelco offers improved broadband
- You don't own phone numbers, warns TRA
- Tech giants back top Qatar ICT event
- Du to provide wifi access in public areas
- Zain finalises $800m, five-year loan facility
- Ooredoo Q4 net profit falls 36pc to $140m
- Mobily, Etisalat team up for LTE roaming
- Batelco approves $84m dividends for 2013
- Etisalat Q4 profit rises 70pc to $394m
- Kenya telecom firm to join Etisalat SmartHub
- Aruba appoints new sales director
- Du enters $1.17 billion financing deals
- VIVA extends 4G LTE offer
- Batelco to update students with latest technologies
- Etisalat SmartHub seals IPX agreement
- Etisalat picks Alcatel for LTE network expansion
- Boeing, QCRI host machine learning forum
- Mobily provides 4G LTE international roaming
- Viva Kuwait, Huawei to set up innovation centre
- Etisalat, Airtel deal to boost network services
- Batelco offers 4G LTE backup solution