Moody’s ratings agency on Friday downgraded Nokia’s debt grade to junk status, citing greater-than-anticipated pressure on the struggling cellphone maker’s earnings after it announced plans for major cuts and global layoffs. It kept the outlook negative, meaning it could downgrade it again.
The agency lowered the Finnish company’s long-term senior unsecured ratings to Ba1 from Baa3, saying that Nokia’s restructuring plan involved “drastically downsizing its infrastructure,” an indication its problems were greater than expected. The agency’s downgrade came after Nokia stock plunged 18 percent on Thursday.
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