Reuters are reporting today that Moody’s have cut their rating on Nokia to just one notch above ‘junk’ today, April 16, 2012. This sent Nokia into a bit of a frenzy trying to defend its cash position and cost-cutting plans.
Immediately they issued a press statement, "Nokia will continue to increase its focus on lowering the company’s cost structure, improving cash flow and maintaining a strong financial position’. Nokia CFO Timo Ihamuotila said in an official statement after Moody’s reduced their long term credit rating to Baa3.
Nokia warned last week of losses for the first and second quarters, stating it had gross cash balances of 9.8 billion euros ($12.8 billion) and a net cash position of 4.9 billion euros as of March 31. ($1 = 0.7644 euros).