The operating margins of Finland-based mobile telecommunications equipment manufacturer Nokia Corp have come under strong pressure since the end of 2008. We are revising our outlook on Nokia to negative from stable and affirming our 'A/A-1' long- and short-term ratings. A downgrade is possible in the next 12-18 months if the profitability of the group's handset segment fails to recover from our expectation of weaker levels over the next two quarters. Nokia continues to benefit from a strong balance sheet and liquidity position. On June 22, 2010, Standard&Poor's Ratings Services revised the outlook on Finland-based mobile telecommunications equipment manufacturer Nokia Corp. to negative from stable. At the same time, we affirmed the 'A' long-term and 'A-1' short-term corporate
