Nokia gets hit with second junk credit rating drop

The bad news, at least financially, for Nokia continued today. Reuters reports that the second of the three major credit rating agencies, Standard & Poor's, cut its rating of the smartphone maker down to "junk" status. This follows a similar downgrade by Fitch Ratings earlier this week.

In its statement, S&P said, "We still expect revenue from Lumia smartphones to grow over time, but not sufficiently to offset a rapid decline in revenue from Symbian-based smartphones over the next few quarters."

As they did with Fitch's downgrade, Nokia sent out a press release with this statement about the S&P decision:

As we have detailed in recent announcements, Nokia is in the middle of a transformation program which encompasses every aspect of our business. We are implementing a decisive action plan to position our company for future growth and success. The main focus of these actions is on lowering the company's costs, improving cash flow and maintaining a strong financial position, while bringing attractive new products to market.

Nokia also repeated that their financial situation "remains strong" with a net cash amount of 4.9 billion euros.

A new report from Strategy Analytics this week claims that Nokia is no longer the number one maker of mobile phones for the first time in over a decade as it lost that position to Samsung in the first quarter of 2012.

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