Finland-based mobile telecommunications equipment manufacturer Nokia Corp. reported a 29% quarterly decline in sales and negative margins at its Devices and Services division in the first quarter of 2012, and gave guidance of "similar or below" for the division's margin in the second quarter. We now expect Nokia to report significantly lower margins and cash flows in 2012 than we had previously expected. We are lowering our long-term corporate credit rating on Nokia to 'BB+' from 'BBB-' and our short-term rating to 'B' from 'A-3'. The outlook is negative, reflecting the possibility of a further downgrade if Nokia fails to stabilize revenues and margins and significantly cut its cash losses. On April 27, 2012, Standard&Poor's Ratings Services lowered
