S038;P downgrades cellphone maker Nokia

Nokia CFO Timo Ihamuotila said the impact of the rating agency8217;s decision on Nokia was 8220;limited.8221;

8220;As we continue our transition,we are applying a strong focus on cash conservation while simultaneously reducing our operating costs and making our operating model stronger and more agile,8221; Ihamuotila said in a statement.

The ailing company has been fighting fierce competition from Apple Inc8217;s iPhone and other makers using Google Inc8217;s popular Android software,including Samsung Electronics Co and HTC of Taiwan,and is also being squeezed in the low-end by Asian manufacturers making cheaper phones,such as China8217;s ZTE.

Last month,Nokia reported a 19 per cent drop in sales and a net loss of 1.4 billion Euros for the second quarter.

The decision by Samp;P follows three separate downgrades by rival ratings agency Moody8217;s since April.

Despite the downgrade Nokia8217;s share price was up 4 per cent at 2.08 Euros in afternoon trading in Helsinki.