Conservative financial policy, which targets a strong balance sheet. Position as world's largest mobile phone supplier. Solid free cash flow generation through the cycle. Efficient operations and substantial intellectual property rights. Fierce competition and short product lifecycle in the handset business. Low profitability of and challenging competitive conditions facing the network business. Weak positions in the U.S. and Japanese handset markets. The ratings on Nokia Corp. reflect our view of the group's conservative financial policy, which targets a strong balance sheet. They further reflect our expectation that the group will be able to generate solid free operating cash flow (FOCF) even during an economic downturn and despite high restructuring costs at its 50%-owned but fully consolidated network business, Nokia Siemens
