Fitch: Nokia faces troubles

Fitch Ratings said that the continued challenges facing Nokia were highlighted by its announcement that its Q212 devices and services operating margin will be less than the negative 3% of Q112.

This is in addition to further restructuring charges, Fitch said, adding that this will lead to a precarious combination of a depleted cash balance without an end in sight to the declining cash flows, a situation that the company will need to rectify soon.

Given the strategic challenges facing the company, these trends are not particularly surprising, Fitch said. If noted that it previously said that the company must demonstrate that it is capable of stabilizing revenue and generating positive low-single-digit operating margins if its rating is to be affirmed at BB+.

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