Moody's cut its rating on Nokia to one notch above junk on Monday, prompting the Finnish mobile phone company to defend its cash position and cost-cutting plans.
"Nokia will continue to increase its focus on lowering the company's cost structure, improving cash flow and maintaining a strong financial position," Nokia CFO Timo Ihamuotila said in a statement after Moody's cut its long-term
credit rating to Baa3.
Nokia, which warned last week of losses for the first and second quarters, said it had gross cash balances of 9.8 billion euros ($12.8 billion) and a net cash position of 4.9 billion euros as of March 31. ($1 = 0.7644 euros)