Nokia outlook changed to positive by Moody’s, ratings affirmed

Moody’s Ratings has revised Nokia Oyj’s outlook from stable to positive, affirming its Ba1 ratings due to expected improvements in profitability, especially from its network infrastructure segment. The agency anticipates strengthened underlying profitability for Nokia, with robust growth in optical and IP networking driven by demand from hyperscalers and cloud providers, further supported by strategic investments like NVIDIA’s equity stake. Despite a muted mobile infrastructure segment, steady recurring profits from intellectual property rights, strong liquidity, and a target for positive free cash flow generation contribute to the positive outlook.