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Nokia Rating Cut Further Into Junk by S&P on Siemens Buyout

Nokia Oyj’s debt rating was cut one step deeper into junk by Standard & Poor’s, which said the handset maker’s net cash may tumble after it agreed to buy Siemens AG’s share in their equipment venture for 1.7 billion euros ($2.2 billion).

The rating was lowered to B+ from BB-, four levels below investment grade, with a stable outlook, S&P said in a statement today. The rating company said Nokia’s net cash may fall as low as 1.3 billion euros at the end of this year. Moody’s Investors Service put Espoo, Finland-based Nokia on review this week for a downgrade, while Fitch Ratings said the acquisition would pressure the company’s balance sheet.