The ratings on Finland-based telecoms company Nokia Corp. reflect its position as the world's largest supplier of mobile handsets, its significant cash generation, and a very conservative capital structure. Nokia is the world's largest supplier of mobile handsets based on the ease of use and brand attractiveness of its handsets, a broad product range across different segments, vast economies of scale supported by its estimated 31% market share (at Sept. 30, 2004), design expertise, product development capabilities, and efficient logistics. The ratings are constrained, however, by the marked deterioration of the market share, profitability, and cash flow of the company's core mobile phones operation during 2004. This results from the rapid intensification of competition in the industry from a number
