Companies News
The
Market Quotes Powered By Forexpros, the Forex, Futures, and Stock Markets Portal.
Moody's sling Nokia to junk status as the once towering Finnish phone giant becomes an underdog.
Friday, 15 June 2012
The sorry state of Nokia described here in a very interest manner by some funny Finnish commentators or analysts.
“Nokia in Finland is a giant that has becomes a weight watcher”
which described how at the peak of Nokia’s corporate fortunes in 2000,
the cellphone maker boasted a payroll strength of over 24,000 employees
in Finland. At the beginning of June this year, that portly figure had
shrunk to a slim frame of 15,900 including 9,100 persons employed by
the parent company. Across the globe, Nokia personnel levels stopped
growing after 2010.
In doing so, Moody's has lowered Nokia’s credit rating to Ba1 with a
negative outlook. Previous rating was Baa3. Therefore, Nokia has
reached the so-called junk status by Moody's standard.
"Today's downgrade reflects our view that Nokia's restructuring plan
indicates these pressures and capital consumption that is greater than
we had previously assumed, "says Wolfgang Draack, vice president and
principal analyst of Nokia at Moody's, in a statement.
Friday's downgrade comes despite Moody's view of Nokia's restructuring
plan as a positive and necessary for the Group's economic viability. A
return to profitability also depends on if Nokia succeeds in its
smartphones transition to the new operating system, Windows.
So there lie a once known giant which currently, hold a share of
Finland’s GDP of around half a percent with taxes paid only in the tens
of millions gradually dissipating.
By Scancomark.se Team
What do you think about this
article or us? Please leave a comment. Thank you!