Nokia's financial situation isn't looking too bright, as the Finnish company's credit rating is reduced to junk by multiple agencies.
Moody's downgraded Nokia's long-term credit rating to Ba1 status, making it the last of the three major credit rating agencies to drop Nokia from investment grade to junk status.
Fitch, which had already downgraded Nokia's credit rating to junk in April along with Standard & Poor, lost even more confidence in the OEM by downgrading Nokia's debt rating from BB+ down two notches to BB-.
The ratings drops follow Nokia's announcement yesterday that its net loss for the second quarter had more than quadrupled since last year, now resting at $1.73 billion (1.41 billion Euros).
All hopes are on Windows 8
A large portion of Nokia's losses are due to the company still relying on sales of its Symbian-based devices worldwide for 20 percent of its revenue.
Nokia found success by focusing on Windows Phone, with its Lumia 900 smartphone driving adoption of the OS, but not enough to offset the company's other losses.
Additionally, even though the Lumia 900 has been well received, analysts are fearful because the devices can't upgrade to Windows Phone 8 when the new OS launches later this year.
"Fitch believes that the company does not have products in its current portfolio that can stem the recent losses." The ratings agency said. "The release of a Windows 8 suite of products now appears crucial.
"The degree of competition in the industry would suggest that it is going to be difficult to re-establish a significant presence in the smartphone market."
Though a Nokia handset roadmap was leaked, Nokia has not officially announced its new handsets for Windows Phone 8 yet.
If smartphone users decide to wait for Windows Phone 8, it may be too little too late for Nokia. The new OS is expected to launch this November, which would leave Nokia with an entire quarter before it can recuperate with a new line of handsets.