Volatile demand in the telecommunications equipment business. Severe competition and continuous price pressure. Recent profitability improvement, but uncertainty about the sustainability of current margins. Solid position in the wireless equipment and services segment. A substantial patent portfolio. Ongoing €2 billion debt reduction plan. Strong balance sheet with comfortable cash balances. Positive free operating cash flow (FOCF), although modest in 2014. Return to shareholders of €3 billion over the next 24 months, resulting in negative discretionary cash flow in 2014. Standard&Poor's Ratings Services' positive outlook on Finnish technology company Nokia Corp. reflects the potential for a one-notch upgrade in the next 12 months if revenues and profitability at least stabilize and FOCF remains positive. We could raise the rating
