S&P further downgrades Nokia after NSN purchase
Rating agency standard and poor’s on Friday downgraded Nokia’s credit rating, citing the deal this week to purchase out Siemens from its Nokia Siemens Networks joint venture for 1.7 billion euros ($2.21 billion). The agency lowered the Finland-based totally company’s long-time period corporate credit standing to B+ from BB-, warning that its strong balance sheet will weaken on the acquisition. The sample also affirmed Nokia’s B quick-time period company credit rating, with a steady outlook, and reduce the difficulty rating on Nokia’s senior unsecured debt to B+ from BB-. “The scores mirror our revised evaluation of Nokia’s monetary risk profile evaluation to `aggressive’ from `significant,'” the agency stated. Rationalizing it is determination, the company stated, “we continue to check its business possibility profile as `vulnerable.'”Nokia said it believes the deal to buy out Siemens, accomplished throughout the present quarter, brought price to the company. “With a robust certain gross and internet cash place, Nokia used to be ready to take advantage of an opportunity to fully personal Nokia Siemens Networks and, we believe, create meaningful value for Nokia shareholders,” CFO Time Ihamuotila stated. “we will be able to continue to take care of our cash tools submit-transaction prudently,” he mentioned.
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scores company same old and terrible on Friday downgraded Nokia’s credit standing
On Monday, Nokia introduced its intention to buy Siemens’ half of the 2007 joint venture to lend a hand bolster its struggling smartphone division. The network’s operation had been lossmaking for a few years amid speculation and rumors that it used to be an acquisition target but lately had shown signs of improvement after restructuring and substantial job cuts. Nokia inventory was once down 2 percent at three.10 euros in early afternoon trading in Helsinki.