Fierce competition in the mobile handset business. Waning market share in mobile handsets, particularly in the smartphone segment. Volatile demand and severe competition in the telecom equipment business. Low profitability after restructuring costs. Substantial intellectual property rights. World's second-largest mobile handset maker. Our anticipation of negative free operating cash flow. Conservative financial policy, targeting a strong balance sheet. Strong liquidity. Standard&Poor's Ratings Services' negative outlook on Finland-headquartered mobile handset maker Nokia Corp. reflects the possibility of a downgrade if profitability and free operating cash flow (FOCF) after restructuring do not sustainably turn positive. We could lower the rating if FOCF remained significantly negative in 2013 (at or below negative €800 million in 2012), or if adjusted consolidated EBITDA
