Moody's lowered Nokia’s status to “high-risk investment”
Finns lose market share at both ends. (note there is a view of the market for cheap phones and expensive business smartphones)
Rating agency Moody 's downgraded the debt rating for Nokia almost to the level of "high-risk investments", and warned that the company has even more difficult times ahead.
Today, in a note for investors, Moody's downgraded the rating of the world's largest manufacturer of phones from Baa2 to Baa3, the lowest rating of investment funds.
While clicking for a slide was a “less than inspiring” financial report , Moody's warns that Nokia will soon encounter even greater problems in the smartphone market, as well as the fact that another drop in status is possible.
“Nokia’s transition from Symbian-based devices to Windows-based devices for the Lumia line was more difficult than expected, if we rely on the fact that sales of Symbian devices fall faster than sales of Lumia grow,” the note says. “Nokia’s current Baa3 rating reflects Moody’s expectations that Lumia will be accepted on the market in 2012 through pricing and marketing, and that it will become the third smartphone system along with Android from Google and Apple’s Apple iOS.”
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Without a doubt, Nokia and Microsoft executives are hoping that Windows Phone will become a hit and grow to compete with Android and iOS, but there is a long way to go. At the same time, cheap Nokia models are rapidly leaving the market under the pressure of cheap Chinese models. Moody's predicts that keeping the Nokia Siemens Network afloat will require even more money next year.
However, not everything perished for the Finns. Moody's says that Nokia has reserves in the amount of about € 10 billion, approximately twice as large as its debt, and the Lumia lineup is in good hands, even if we consider that they are given away for nothing .
Moody's said it would raise Nokia’s status if evidence of increased revenue or great support from Lumia’s customers is presented. However, further reductions will occur if the situation continues to worsen.
You can argue that Moody's was one of the rating agencies that recommended debt as an investment (note the recent financial crisis) - and you may well be right, the price of Nokia shares rose slightly on Monday. But more analysts are seriously concerned about the future of Nokia, the company is losing its employees and consumers, and this alliance Miscrosoft, in order to promote (yet) not popular mobile OS, does not assure the analyst of the opposite.
UPD. Replaced “trash” with “high-risk investments”
Rating agency Moody 's downgraded the debt rating for Nokia almost to the level of "high-risk investments", and warned that the company has even more difficult times ahead.
Today, in a note for investors, Moody's downgraded the rating of the world's largest manufacturer of phones from Baa2 to Baa3, the lowest rating of investment funds.
While clicking for a slide was a “less than inspiring” financial report , Moody's warns that Nokia will soon encounter even greater problems in the smartphone market, as well as the fact that another drop in status is possible.
“Nokia’s transition from Symbian-based devices to Windows-based devices for the Lumia line was more difficult than expected, if we rely on the fact that sales of Symbian devices fall faster than sales of Lumia grow,” the note says. “Nokia’s current Baa3 rating reflects Moody’s expectations that Lumia will be accepted on the market in 2012 through pricing and marketing, and that it will become the third smartphone system along with Android from Google and Apple’s Apple iOS.”
')
Without a doubt, Nokia and Microsoft executives are hoping that Windows Phone will become a hit and grow to compete with Android and iOS, but there is a long way to go. At the same time, cheap Nokia models are rapidly leaving the market under the pressure of cheap Chinese models. Moody's predicts that keeping the Nokia Siemens Network afloat will require even more money next year.
However, not everything perished for the Finns. Moody's says that Nokia has reserves in the amount of about € 10 billion, approximately twice as large as its debt, and the Lumia lineup is in good hands, even if we consider that they are given away for nothing .
Moody's said it would raise Nokia’s status if evidence of increased revenue or great support from Lumia’s customers is presented. However, further reductions will occur if the situation continues to worsen.
You can argue that Moody's was one of the rating agencies that recommended debt as an investment (note the recent financial crisis) - and you may well be right, the price of Nokia shares rose slightly on Monday. But more analysts are seriously concerned about the future of Nokia, the company is losing its employees and consumers, and this alliance Miscrosoft, in order to promote (yet) not popular mobile OS, does not assure the analyst of the opposite.
UPD. Replaced “trash” with “high-risk investments”
Source: https://habr.com/ru/post/142209/
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