Moody's downgrades Nokia's credit rating

LONDON (AP) - Moody's has downgraded its credit rating on Finnish mobile phone company Nokia by two notches partly because of a loss of competitiveneses of its smartphones.

In a statement Wednesday, Moody's says the downgrade to Baa2 from A3 previously reflects a "severe weakening of Nokia's business position from one of clear leadership previously."

As well as concerns over the smartphones, Nokia is warning about the time it will take Nokia to get its operating systems to be Windows-compatible after it struck a partnership with Microsoft. Moody's also see increasing price pressures and gaps in Nokia's mobile phone portfolio.

Nokia Corp. shares are trading 0.6 percent lower on the Helsinki exchange at (euro) 4.02.

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