The ratings on Finland-based mobile telecommunications equipment manufacturer Nokia Corp. reflect the company's leading position in the mobile handset market, with an estimated 35% global market share; industry-leading profitability due to its strong product offering and large scale; strong cash flow generation; and very conservative balance sheet. These factors are partly offset by the very competitive nature of the mobile handset market--with competitors such as Motorola Inc. (A-/Stable/A-1), Samsung Electronics Co. Ltd. (A/Stable/A-1), and SonyEricsson--in addition to rapid changes in technology and customer needs and preferences that put pressure on profitability. Nokia reported sales of €41.1 billion and EBITDA of €6.2 billion in the fiscal year 2006. About 80% of the company's revenues are generated from mobile handsets, with about
