Fitch upgrades Nokia to BB+

Fitch Ratings said it upgraded Nokia Corp.’s long-term issuer default rating and senior unsecured rating to BB+ from BB.

The outlook on the issuer default rating is positive.

Fitch said the upgrade reflects Nokia's improved operating profile following its acquisition of Alcatel-Lucent, steady operational progress in the company's core network and technologies division and sustained 2015 financial performance at Alcatel-Lucent despite the lengthy acquisition process.

While integration risks remain, Fitch believes these are manageable. Nokia has a strong balance sheet position with a net cash position of €7.78 billion (end-2015) that provides the company with flexibility for managing cyclicality, sector risks and investments. The agency expects Nokia to reduce debt by €3 billion in line with its capital structure optimization program announced in October 2015.

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