Moody’s further downgrades Nokia’s financial rating

It’s been torrid times for Nokia recently and, according to financial ratings agency Moody’s, things aren’t looking set to improve any time soon. The agency downgraded Nokia’s financial status for the second time this year, leaving the ailing Finnish phone manufacturer teetering precariously on the brink of non-investment status.

A major factor in this double-dip downgrade was the release of Nokia’s earnings report for the last financial quarter, which showed the company’s operating losses to be almost twice as bad as Moody’s had predicted.

While Nokia may be hoping that the release of the highly-anticipated Windows Phone 8 platform will boost their profits, Moody’s are not letting up in their negative forecast. In a statement released to SlashGear, Moody’s said:

“At around 16% gross profit margin, the new Lumia devices are loss-making at operating level at this time. In view of a very price competitive and fast moving smartphone industry, Moody’s expects that the next, Windows Phone 8-based smartphone generation will find it challenging to achieve a level of differentiation and market penetration to become a meaningful income generator in the first few quarters after launch. If the devices are launched and first units shipped in Q4 2012 and find immediate traction, it might still take until mid-2013, before volumes and margins reach a level of sustainable profitability.”

They predict that Nokia will only return to profitability in 2013. Nokia, meanwhile, were short and sharp in their comment on the downgrade, saying, ‘While we are disappointed with Moody’s decision, its impact on the company is limited.’