Nokia downgraded following NSN buyout

According to Standards & Poor’s, Nokia’s credit is worse than junk. The ratings agency on Friday downgraded Nokia just a few days after it announced the buyout of Siemens’ stake in their joint network equipment venture for $2.2 billion, Reuters reported. S&P warned that the buyout will put further pressure on Nokia’s net cash, which “could be as low as 1.3 billion euros at the end of 2013.” Nokia argued that in addition to a strong gross and net financial position, the company also has access to additional cash from an undrawn credit facility. The agency still downgraded Nokia by one notch from BB- to B+, however. Moody’s is also reviewing Nokia and may downgrade the company from a B2 rating to a Ba3.

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