The ratings on Finland-based mobile telecommunications equipment manufacturer Nokia Corp. reflect our view of its dominant position in the mobile handset market, with an estimated 38% share of global volumes in 2009. Nokia has industry-leading profitability, primarily owing to its good product portfolio and large scale. The ratings are also supported by our opinion of 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 a significant economic downturn. These factors are partly offset by the weak profitability of the network business due to a very tough market environment, which places high reliance on the handset business. Other rating constraints
