Ratings agency Standard & Poor’s has again downgraded Nokia’s debt level, as the Finnish mobile phone giant revealed its new marketing strategy.
Reuters reports the ratings agency downgraded Nokia’s credit rating from B+ from BB- over concerns a proposed takeover could dwindle the company’s cash reserves.
As SmartCompany reported last week, Nokia announced plans to purchase Siemens’ 50% stake in telecommunications equipment joint venture Nokia Siemens Networks for around $US2.2 billion.
“We now anticipate Nokia’s net cash could be as low as 1.3 billion euros ($A1.84b) at the end of 2013,” S&P said in a press statement.
Nokia fired back with a press release of its own, defending the company’s financial position.
“Nokia estimated its cash resources for the end of the second quarter 2013 to be between EUR 9.2 billion [to] EUR 9.7 billion in gross cash and between EUR 3.7 billion [to] EUR 4.2 billion in net cash,” Nokia stated.
Meanwhile, Nokia chief marketing officer Tuula Rytilä has revealed the company has repositioned its brand from being a market leader to being a challenger in an interview with AdAge.
“For years we were the leader in our industry. When a leader is [at the top] for a long time, naturally they have more to lose and become more defensive. Now we actually get to act like a challenger. It’s quite natural, and we’re having a lot of fun with it. We want to be more bold in our approach, and [we want] a global brand as well,” Rytilä said.