Nokia Corp, the largest mobile phone maker in the world, has had its credit rating downgraded for the first time.
Standard & Poor’s, the division of McGraw-Hill that publishes financial research and analysis on stocks and bonds, has lowered Nokia's credit rating. The financial analysis firm also warned of further market share losses by the company in the days to come.
In its report published on 30th March, S&P stated, “The downgrade reflects the revision of our business risk profile assessment on Nokia to ‘satisfactory’ from ‘strong,’ primarily because we expect that Nokia’s smartphone portfolio will make further significant market share losses during 2011 and 2012,”
The researcher further said that there is a pretty high chance of Symbian’s shares falling from 15% to 0.2% in the next four years. Recently, CEO Stephen Elop confirmed Nokia’s decision to go for Microsoft's Windows phone 7 as the main operating software for its smartphones, though it will be maintaining support for symbian based phones, for the time being.
In the last quarter Google's Android has overtaken the long dominating Symbian OS in terms of market share, and Nokia’s stake in the smartphone market has lowered by some 20% since Apple introduced its iPhone in 2007.