nokia wp7 Nokia gets downgraded as Microsoft deal fails to deliver

Finnish mobile firm Nokia has been downgraded by a credit ratings agency as analysts fail to see how its deal with Microsoft for Windows Phone devices is paying off.

Finnish mobile firm Nokia has been downgraded by a credit ratings agency as analysts fail to see how its deal with Microsoft for Windows Phone devices is paying off.

 
Credit agency Fitch Ratings lowered Nokia's rating from BB+ to BB- after the company posted a net loss of a whopping $1.72 billion, almost four times the loss it made in the same quarter of last year. 
 
The agency also said Nokia's long-term outlook is “negative” and  that it is “not convinced that the company will be able to stabilise revenues and reach an operating profit breakeven point.”
 
nokia wp7 Nokia gets downgraded as Microsoft deal fails to deliver
 
Shares for Nokia have fallen around 80 percent since the seemingly ill-fated deal with Microsoft in February 2011. There was some good news as investors helped shares rally 12 percent on Thursday after Nokia revealed it still had a large cash pile at its disposal. This was short lived, however, as stocks fell again by five percent today among renewed fears about the company's future.
 
Nokia plans to release a new set of Lumia smartphones in September, but previous Lumia models have failed to take the world by storm, and many analysts see Windows Phone 8 as the only saving grace available to Nokia. Even then, it is expected that it will take time for such devices to catch on.
 
Source: Reuters