Moody's lowers Nokia to A2

Moody's Investors Service said it downgraded to A2 from A1 the senior debt rating of Nokia Oyj, affirmed the Prime-1 short-term debt rating and changed the outlook to stable from negative.

The rating change reflects the agency's view that the mobile phone market will become more challenging for Nokia as a result of its more modest long-term growth and more formidable competition in the attractive segments of the market and that as a result, Nokia is unlikely to return in the near term to the superior credit metrics that have marked the company's credit profile for many years.

At the same time, Moody's said the rating recognizes the still very resilient business profile of Nokia with market shares that dwarf the closest competitors. The expected stabilization of credit metrics on a lower platform and the strong established global market position of the company support the stable rating outlook, in the agency's view.

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