Creditreform Rating AG confirmed the unsolicited issuer rating of Nokia Oyj. The outlook remains stable. The main positive factors contributing to the rating are the Group´s strong market position, the geographical diversification as well as the improved results generated in 2019 and H1 2020, mainly due to an improvement in the Company´s cost structure and operating profitability resulting from measures implemented in the past. However, despite significant savings, we currently also see the current cost savings program of the Company as a constraining rating factor because further cash outflows and restructuring and associated charges are expected to at least the end of 2020, which will continue to put pressure on the Group´s earnings and cash flows. Further constraining factors for the unsolicited corporate issuer rating are the fast-moving pace of the product cycle and cyclical nature of the industry, the dependence on the spending cycle of communication service providers, and the needed commitment for ongoing high R&D investments in order to retain its market position. Due to the ongoing COVID-19 crisis we expect a positive result for the current business year despite a significant fall in revenue.
Creditreform Rating has carried out an unsolicited rating of Nokia Oyj. The rating has been set to BB+ with stable outlook.