Moody's downgrades struggling Nokia's debt rating

Associated Press

HELSINKI (AP) — Moody's says it has downgraded Nokia Corp.'s debt rating because of a sharp decline in expected first-quarter cell phone sales that led to a 35 percent fall in revenue in the period.

The agency on Monday dropped the struggling Finnish company's long-term credit rating by one notch to Baa3 following last week's profit warning.

Nokia's share has plunged more than 20 percent since Wednesday when it said that heavy competition will hit first-quarter earnings and that it expected no improvement in the second quarter.

Nokia is due to report first-quarter earnings results on April 19, with some analysts predicting that Samsung Electronics Co. has overtaken it in cell phone volumes in the quarter.