Oct. 3 (Bloomberg) -- A plan to provide 1 billion euros ($1.33 billion) to Nokia Siemens Networks is negative for Nokia Oyj’s credit rating, Moody’s Investors Service said in a report.
Nokia and Siemens AG will each provide 500 million euros to their 50-50 joint venture, the Espoo, Finland-based company said in a statement Sept. 29.
“The capital injection, which we expected, is credit negative for Nokia as it reduces cash balances at the parent level, which are key to its rating,” Moody’s said in its Weekly Credit Outlook. “The credit implications are much more pronounced for Nokia, whose liquidity is a key rating factor.”
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