Report: Nokia performs better than expected, but outlook remains negative

Nokia's performance over the past 12 months has been better than expected, according to a recent research note from Fitch Ratings. However, due to the remaining challenges and lack of visibility for the company's handset business, the ratings agency believes a stabilisation of its debt rating is still some way off. Nokia Solutions and Networks (NSN) has been a particular driver of the group's strong performance, added Fitch, with NSN's more targeted focus on mobile equipment in developed markets helping to improve profitability. By contrast, Nokia's Devices & Services remains challenged. Fitch noted that the mobile phones business in particular continues to suffer substantial revenue and market share erosion. The agency added thought that Nokia's Lumia Windows Phone smartphone portfolio is beginning to gain some traction, and the stabilisation of this business, along with continued strong performance at NSN, will be key to the ratings being stabilised at the current level. Report