Reuters reports that U.S. ratings agency Moody’s cut its credit rating on bonds of struggling Finnish phone maker Nokia Oyj by two notches on Wednesday and said the outlook on the rating was still negative.

A spokesman for Nokia said the rating cut would have no
material impact on the company’s current financing costs.

Fitch and S&P cut Nokia’s credit ratings last month.

Last week Nokia reported a steep net loss for the June
quarter and surrendered its lead in the global smartphone market
— which it created in 1996 with its first Communicator model —
to rival Apple . [ID:nLDE76K01W]

In recent years Nokia has failed to match the appeal of
Apple and phones using Google software. It is now
pinning its turnaround hopes on a new suite of devices using
Microsoft software, which are due to start reaching
consumers in late-2011.

“Visibility for Nokia’s future operating metrics such as
mobile phones sold or average selling prices is currently very
low due to the transition in its product offering,” Moody’s said
in a statement.

However, it said Nokia has maintained a strong liquidity
position and capital structure, which should support the
transition process by covering possible cash burn.