EE Times reports another disastrous earnings call by Nokia has led to the Finnish phone maker's debt being downgraded to "negative" outlook by Moody's and Standard & Poor's, while Fitch goes as far as to rate it as "junk".
Another quarter of disastrous financial results for Nokia last week, with a quarterly loss of $1.7 billion, has led to the Finnish phone maker’s debt being downgraded to “negative” and even “junk” by major financial consultants.
Both Moody’s and Standard & Poor's pushed Nokia down to “negative status” after the firm announced its revenue was down a significant 30 percent from the same period last year, with spending reaching $2.6 billion in the last six months alone. The Fitch ratings agency went a step further, downgrading Nokia to “junk” status, with a negative outlook for the firm’s future.
Nokia only managed to sell 11.9 million smart phones in the first quarter, a figure representing less than half of the 24.9 million smart phone sales the company achieved in the same time period of 2011. Though much of this can be blamed on the phasing out of Symbian handsets, sales of the Nokia Lumia totaled only 2 million in the first quarter, by no means enough to offset the steep decline.