Moody’s chastens Nokia, but upbeat on smartphone growth

The financial cost to Nokia as it swaps over to Microsoft’s Windows Phone operating system has caused consternation at Moody’s, but the ratings agency is upbeat on smartphone growth generally.

Moody’s says its decision to slice its rating on Nokia’s debt by one notch primarily reflected the phone giant’s weakened position in its business.

“The rating downgrade primarily reflects Nokia’s weakened market position in its core business, mobile devices, which has reduced the company’s margins and funds from operations,” Moody’s analyst Wolfgang Draack said in a statement.

The ratings agency also lowered its ratings outlook for Nokia to negative, according to All Things Digital. However, Moody’s was nonetheless bullish on the smartphone sector and the company’s balance sheet.