The world’s largest producers of mobile phones, Nokia OVI, had the ratings of its outstanding liabilities cut by the investors’ services from Moody's. This has encouraged the weak position in the market of the Finland based company and lowering margins for profit.

The rating of the firm was reduced by a step and moved to A3 and this makes them the seventh-highest of 10 in the rating of investment grades. According to Moody, this is the reason is the reason for a negative outlook.

The current move has come as a result of the Standard& Poor cut to A on the 30th of last month.

By the end of last year, Nokia has a long term debt of as much as 5.3 billion Euros. “The rating downgrade primarily reflects Nokia’s weakened market position in its core business, mobile devices, which has reduced the company’s margins and funds from operations”, Wolfgang Draack, Moody’s senior vice president and lead analyst for Nokia, said in the statement.

Moody's also added that the pressure of the ratings is expected to rise if the annual device sales by Nokia were any less than 340 million units and that of the smart phones were less than 80 million. There might be a similar effect if the company consumed huge amounts of cash over a period of a year.