Moody's cuts Nokia's credit rating as HTC bounds ahead in market cap

Nokia's (NYSE: NOK) fortunes took another tumble as Moody's cut handset maker's credit rating, citing the company's poor market position and uncertainty of the transition's to Microsoft's (NASDAQ : MSFT) Windows 7 Phone as their primary platform for smart phones.
[April 7, 2011] Moody'reduces Nokia's credit rating to A3, the negative outlookApr 07, 2011 (NORDIC BUSINESS REPORT via COMTEX) - 7 April 2011 - Moody's today lowered its rating on the leading Finnish mobile phone maker Nokia Oyj (HEL: NOK1V) to A3 from A2 because of its weakened position in the market and the uncertainty stems from the collaboration with Microsoft (NASDAQ: MSFT ).
At the same time passed the Taiwanese smartphone maker HTC Nokia in relation to market value.
The agency also cut its short-term credit rating on Nokia to Prime-2 from Prime-1.
Moody's cut its rating on Nokia's senior debt to A3 from A2.
The outlook for all ratings is negative.
The ratings agency also cut its short-term debt ratings to Prime-2 from Prime-1, and said the outlook for these ratings was negative.
The rating downgrade primarily reflects Nokia's weakened position in its core business, mobile devices, which have reduced the company's margins and funds from operations, said Wolfgang Draack, senior vise president at Moody's,.
The rating downgrade primarily reflects Nokia's weakened position in its core business, mobile devices, which have reduced the company's margins and funds from operations, wrote Wolfgang Draak, Moody's senior vice president and cord analyst for Nokia, in a note.
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The ratings cut comes a week after Standard&Poor's has also cut its rating on Nokia's debt for the first time.
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When Nokia announced cooperation with Microsoft in February to switch to Windows 7 Phone, provided that the overall financial targets for the transition
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The company said both the 2011 and 2012 will be a transition year, but after moving to their devices and services net sales will grow faster than the market, and operating margin will be 10 percent or more
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Meanwhile, HTC, who has risen to prominence on the back of Google's (NASDAQ: GOOG) passed Android platform, as well as through its partnership with Microsoft, Nokia in terms of market capitalisation
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However, the agency sees the uncertainty over the financial impact that the transition will have on Nokia and the customer acceptance of Windows phone offers.
HTC's shares gained 5.3 percent in trading in Taiwan, pushing the market value of 33.8 billion U.S. dollars - a little ahead of Nokia's market value of $ 33,600,000,000
Last week, Standard&Poor's (S&P) downgraded its rating for Nokia, also citing concerns over the transition to Microsoft's operating system.
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Rating Agency website: http://www.moodys.comComments on this storey may be sent to nbr.feedback @ nordicbusinessreport.com [Back to TMCnet.
That being said, Nokia still remains the world's largest handset maker in both market share and shipments
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