Bulletin: Nokia's Free Cash Flow Turnaround Remains In Sight Despite Lower Revenue And Profit - S&P Global Ratings’ Credit Research

Bulletin: Nokia's Free Cash Flow Turnaround Remains In Sight Despite Lower Revenue And Profit

Bulletin: Nokia's Free Cash Flow Turnaround Remains In Sight Despite Lower Revenue And Profit - S&P Global Ratings’ Credit Research
Bulletin: Nokia's Free Cash Flow Turnaround Remains In Sight Despite Lower Revenue And Profit
Published Nov 02, 2020
2 pages (1263 words) — Published Nov 02, 2020
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Abstract:

STOCKHOLM (S&P Global Ratings) Nov. 2, 2020--S&P Global Ratings today said that it now expects telecom equipment maker Nokia Corp. (BB+/Negative/A-3) will post lower revenue and profitability for 2020-2021 following Nokia's third-quarter results and updated guidance for 2020-2021. Nevertheless, we believe Nokia's S&P Global Ratings-adjusted free operating cash flow (FOCF) could still recover sustainably to about €500 million annually, which is our threshold for the 'BB+' rating, assuming Nokia can defend its global mobile network market share (excluding China) and there are no additional restructuring charges in 2021. We now expect Nokia's revenue to decline by 5%-7% in 2020 and by 1%-2% in 2021, compared with the assumption in our previous base case of a 1%-2% decline in 2020 and

  
Brief Excerpt:

...November 2, 2020 STOCKHOLM (S&P Global Ratings) Nov. 2, 2020--S&P Global Ratings today said that it now expects telecom equipment maker Nokia Corp. (##+/Negative/A-3) will post lower revenue and profitability for 2020-2021 following Nokia's third-quarter results and updated guidance for 2020-2021. Nevertheless, we believe Nokia's S&P Global Ratings-adjusted free operating cash flow (FOCF) could still recover sustainably to about 500 million annually, which is our threshold for the '##+' rating, assuming Nokia can defend its global mobile network market share (excluding China) and there are no additional restructuring charges in 2021. We now expect Nokia's revenue to decline by 5%-7% in 2020 and by 1%-2% in 2021, compared with the assumption in our previous base case of a 1%-2% decline in 2020 and slight growth in 2021 (see our full analysis "Nokia Corp.," published Sept. 28, 2020, on RatingsDirect). The downward revision of our projections stems from Nokia's lower expected sales of network...

  
Report Type:

Bulletin

Issuer
Nokia Corp.
GICS
Communications Equipment (45201020)
Sector
Global Issuers
Country
Finland
Region
United States
Format:
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MLA:
S&P Global Ratings’ Credit Research. "Bulletin: Nokia's Free Cash Flow Turnaround Remains In Sight Despite Lower Revenue And Profit" Nov 02, 2020. Alacra Store. May 02, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Nokia-s-Free-Cash-Flow-Turnaround-Remains-In-Sight-Despite-Lower-Revenue-And-Profit-2548884>
  
APA:
S&P Global Ratings’ Credit Research. (). Bulletin: Nokia's Free Cash Flow Turnaround Remains In Sight Despite Lower Revenue And Profit Nov 02, 2020. New York, NY: Alacra Store. Retrieved May 02, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Nokia-s-Free-Cash-Flow-Turnaround-Remains-In-Sight-Despite-Lower-Revenue-And-Profit-2548884>
  
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