Fitch junks Nokia’s rating

Mobile phone firm Nokia, struggling against fierce competition in the smartphone market, yesterday saw its credit rating cut to junk status by Fitch Ratings.

Nokia has already been downgraded in recent weeks by Standard & Poor’s and Moody’s. Fitch reduced its rating from BBB- to BB+ and said the outlook for the Finnish group remained negative as its dwindling market share starts to strain its cash position.

The firm last week reported a first-quarter loss of €929 million (£760m), compared with a €344m profit a year earlier, following a 30 per cent drop in revenues to €7.4 billion.

Nokia defended its financial position, citing its net cash position of €4.9bn as of 31 March. Chief financial officer Timo Ihamuotila said: “We are quickly taking action to position Nokia for future growth and success.”