The ratings on Nokia Corp. reflect our view of the group's conservative financial policy, which targets a strong balance sheet. They further reflect our expectation that the group will be able to generate solid free operating cash flow (FOCF) even during an economic downturn and despite high restructuring costs at its 50%-owned but fully consolidated network business, Nokia Siemens Networks (NSN). The ratings are supported by the group's leading position in the mobile handset market, efficient operations, and substantial intellectual property rights. Nokia estimates that it had a 33% share of global handset volumes in the first quarter of 2010. These factors are partly offset in our view by the weak profitability of NSN due to a very tough market
