Ratings agency Moody dropped Nokia’s credit rating to junk, citing slow sales of Windows Phone and the company’s quickly-disapperaing cash reserves. Moody joins S&P and Fitch, both of which dropped their ratings on Nokia earlier this year. This low rating means institutional investors are less likely to buy Nokia bonds and reflects the company’s dismal financial outlook.
Just this week, Nokia announced it was cutting 10,000 jobs and lowering its expectation for Q2 2012. Nokia’s stock took a hit after this announcement and fell another 15 percent. The company’s stock has lost 50 percent of its value since the beginning of this year. Analysts also cut their price target on the stock, with some like Wedbush Securities dropping their targets to $2.50 from $3.25.