Moody’s Downgrades Nokia Again, Nokia RespondsJuly 24, 2012 2 Comments
Once again, Moody’s has downgraded Nokia and has stated that they estimate the company will regain traction in 2013. Nokia wasted no time however on replying to the downgrade.
Espoo, Finland – Timo Ihamuotila, Nokia’s Executive Vice President and CFO, comments on today’s rating decision from Moody’s:
“While we are disappointed with Moody’s decision, its impact on the company is limited. We are quickly taking action to position Nokia for future growth and success. Nokia will continue to focus on lowering the company’s cost structure rapidly, improving cash flow and maintaining a strong financial position.”
Nokia’s financial position remains strong. As of June 30 2012, Nokia had gross a cash balance of EUR 9.4 billion, and a net cash balance of EUR 4.2 billion both balances being higher than one year ago. Nokia also has access to additional liquidity via a revolving credit facility of EUR 1.5 billion. This is entirely undrawn and available to the company through March 2016.
Further information on Nokia’s debt instruments can be found in the company’s Q2 2012 Interim Report issued on July 19, 2012.