July 27 (Reuters) - Nokia Oyj, the world's largest maker of mobile phones, a credit rating cut by Moody, citing "severe decline" of the market position of the Finnish society.
Senior debt rating was cut by two notches to Baa2, the second lowest among the 10 investment grade ranking, with a negative outlook, Moody's said in a statement today. The change affects about 3.5 billion euros (5.1 billion) in senior debt.
"This decline is due to the loss of competitiveness of Nokia smartphones based on Symbian, the portfolio and the transition of its Windows Mobile operating system platform," Moody's analyst Wolfgang Draack said in a statement that also cited "pressure on prices over and gaps in the portfolio company's phone, which is now full. "
Espoo, Finland-based Nokia may also contribute additional capital or financing of its telephone equipment venture with Siemens AG, Moody's said.
Nokia this month reported a loss greater than expected second-quarter net 368 million euros in combined sales in Europe and China slipped. The company is facing tough competition as Google Inc. Android smartphones using software from eating at mid-range sales and the role of high-end phone.
Chief executive Stephen Elop has changed the core software of Microsoft Corp. Windows smartphone Phone and announced job cuts.
Senior debt rating was cut by two notches to Baa2, the second lowest among the 10 investment grade ranking, with a negative outlook, Moody's said in a statement today. The change affects about 3.5 billion euros (5.1 billion) in senior debt.
"This decline is due to the loss of competitiveness of Nokia smartphones based on Symbian, the portfolio and the transition of its Windows Mobile operating system platform," Moody's analyst Wolfgang Draack said in a statement that also cited "pressure on prices over and gaps in the portfolio company's phone, which is now full. "
Espoo, Finland-based Nokia may also contribute additional capital or financing of its telephone equipment venture with Siemens AG, Moody's said.
Nokia this month reported a loss greater than expected second-quarter net 368 million euros in combined sales in Europe and China slipped. The company is facing tough competition as Google Inc. Android smartphones using software from eating at mid-range sales and the role of high-end phone.
Chief executive Stephen Elop has changed the core software of Microsoft Corp. Windows smartphone Phone and announced job cuts.
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