The ratings on Finland-based mobile telecommunications equipment manufacturer Nokia Corp. reflect its dominant position in the mobile handset market, with an estimated 39% share of global volumes in 2008. Nokia has industry-leading profitability, owing to its strong product portfolio and large scale. The ratings are also supported by Nokia's conservative financial policy, which targets a strong balance sheet, and by our expectation that the company will be able to generate solid free operating cash flow (FOCF) even during the current significant economic downturn. These factors are partly offset by the weak profitability of the network business due to a very challenging market environment, placing high reliance on the handset business. Other rating constraints are the fierce competitive nature of the
