Research Update: Telecom Network Equipment Vendor Nokia Outlook Revised To Negative On Weaker Cash Flow Prospects, 'BB+' Rating Affirmed - S&P Global Ratings’ Credit Research

Research Update: Telecom Network Equipment Vendor Nokia Outlook Revised To Negative On Weaker Cash Flow Prospects, 'BB+' Rating Affirmed

Research Update: Telecom Network Equipment Vendor Nokia Outlook Revised To Negative On Weaker Cash Flow Prospects, 'BB+' Rating Affirmed - S&P Global Ratings’ Credit Research
Research Update: Telecom Network Equipment Vendor Nokia Outlook Revised To Negative On Weaker Cash Flow Prospects, 'BB+' Rating Affirmed
Published Oct 31, 2019
8 pages (3833 words) — Published Oct 31, 2019
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

On Oct. 24, 2019, global telecom network equipment vendor Nokia Corp. reported third-quarter results below our expectations and revised its earnings and cash flow guidance for 2019-2020. We think this creates additional competitive and execution risks in Nokia's mobile access portfolio, and we have lowered our profitability and free operating cash flow (FOCF) estimates for Nokia over the next two years. At the same time, we continue to think that Nokia's balance sheet will remain solid until FOCF turns significantly positive, supported by the company's announcement to suspend its dividends. We are therefore revising our outlook on Nokia to negative and affirming our 'BB+' long-term issuer and issue ratings on Nokia and its unsecured debt. The negative outlook reflects the

  
Brief Excerpt:

...- On Oct. 24, 2019, global telecom network equipment vendor Nokia Corp. reported third-quarter results below our expectations and revised its earnings and cash flow guidance for 2019-2020. - We think this creates additional competitive and execution risks in Nokia's mobile access portfolio, and we have lowered our profitability and free operating cash flow (FOCF) estimates for Nokia over the next two years. - At the same time, we continue to think that Nokia's balance sheet will remain solid until FOCF turns significantly positive, supported by the company's announcement to suspend its dividends. - We are therefore revising our outlook on Nokia to negative and affirming our '##+' long-term issuer and issue ratings on Nokia and its unsecured debt. - The negative outlook reflects the possibility of a one-notch downgrade in the next 12-18 months if Nokia's FOCF does not sufficiently recover to support adjusted annual FOCF of more than 500 million from 2021, equivalent to an adjusted FOCF-to-debt...

  
Report Type:

Research Update

Issuer
Nokia Corp.
GICS
Communications Equipment (45201020)
Sector
Global Issuers
Country
Finland
Region
United States
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Telecom Network Equipment Vendor Nokia Outlook Revised To Negative On Weaker Cash Flow Prospects, 'BB+' Rating Affirmed" Oct 31, 2019. Alacra Store. May 02, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Telecom-Network-Equipment-Vendor-Nokia-Outlook-Revised-To-Negative-On-Weaker-Cash-Flow-Prospects-BB-Rating-Affirmed-2330154>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Telecom Network Equipment Vendor Nokia Outlook Revised To Negative On Weaker Cash Flow Prospects, 'BB+' Rating Affirmed Oct 31, 2019. New York, NY: Alacra Store. Retrieved May 02, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Telecom-Network-Equipment-Vendor-Nokia-Outlook-Revised-To-Negative-On-Weaker-Cash-Flow-Prospects-BB-Rating-Affirmed-2330154>
  
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