Nokia Debt Rating Cut to Junk at Fitch

Nokia Oyj’s rating was cut to junk for the first time by a debt rating company as the Finnish mobile-phone maker loses its grip on a market now dominated by Apple Inc. and Asian suppliers such as Samsung Electronics Co.

Fitch Ratings today lowered Nokia’s long-term debt ranking to BB+, one step below investment grade, citing a deterioration in the handset business in the first quarter and a “general lack of visibility.” Fitch said it may further cut the rating if Espoo, Finland-based Nokia’s revenue doesn’t stabilize and operating margins don’t return to positive. The decision covers about 4.9 billion euros ($6.5 billion) in debt.