Finland-based mobile telecommunications equipment manufacturer Nokia Corp. faces continuing challenges in defending its smartphone market share. We expect a further weakening of the operating margin in the company's Devices&Services division in 2012 compared with 2011. We are revising our business risk assessment of the company to "fair" from "satisfactory". We are lowering our long-term corporate credit rating on Nokia to 'BBB-'from 'BBB' and our short-term rating to 'A-3' from 'A-2'. The outlook is negative, reflecting the possibility of a further downgrade in the next two years if the company's margins remain in the low-to-mid single digit range or the net balance sheet cash position decreases to €2 billion from €5.6 billion at the end of 2011. On March
