Credit rating agency Moody’s downgraded cell phone maker Nokia’s credit rating to junk Friday, becoming the last of the three major credit rating agencies to give the cell phone company a junk rating.
The downgrade is the second such downgrade by Moody’s in the last three months and comes the day after the Finnish company announced it would be cutting 10,000 jobs by the end of 2013. Nokia’s stock fell 18% after the announcement that it would cut jobs and has yet to fully recover.
Nokia now holds an investment grade of Ba1, the highest possible non-investment grade, Moody’s said. Moody’s also gives the company a negative outlook.
In April both Standard and Poor and Fitch downgraded Nokia’s rating in the midst of falling revenue. Both agencies also have poor outlooks for the company.
“[Nokia's plan] delineates a scale of earnings pressure and cash consumption that is larger than we had previously assumed,” said Wolfgang Draack, a senior vice president at Moody’s.