The ratings on Finland-based Nokia Corp. reflect Standard&Poor's Ratings Services' assessment of the company's business risk profile as "weak", including our assessment of its management and governance as "fair", and its financial risk profile as "significant". Our view on the business risk profile is constrained by the fiercely competitive nature of the mobile handset business and challenging competitive conditions for Nokia's 50%-owned but fully consolidated network business, Nokia Siemens Networks (NSN). Nokia's share of the global smartphone market had dropped to 3% by the fourth quarter of 2012 from 12.5% in the fourth quarter of 2011, according to market research company Strategy Analytics, and we anticipate weak operating margins (under non-International Financial Reporting Standards; non-IFRS) for the Devices
