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Nokia share price hits 15-year low as Fitch downgrades it to 'junk' status

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We may look back on this day as the point from which Nokia bounced back up, but for now at least, the struggles over in Espoo are being judged harshly by the financial markets. The Fitch ratings agency has followed Moody's and Standard & Poor's in downgrading Nokia's creditworthiness, but it has gone one step further in dropping it all the way down into the "junk" category. This adds a negative outlook for the future as well as the present.

Nokia's own expectations for the next financial quarter aren't much happier, but the company could have done without financial analysts piling on in this fashion. The stock price for Nokia shares has also hit a 15-year low today, as noted by Reuters, a continuing negative reaction to the downbeat Q1 2012 financial report and near-term outlook. Nokia's response to Fitch's downgrade has been swift, with company CFO and Vice President Timo Ihamuotila stating:

"We are quickly taking action to position Nokia for future growth and success. Nokia will continue to increase its focus on lowering the company's cost structure, improving cash flow and maintaining a strong financial position."

The Verge
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