PARIS: International ratings agency Fitch on Friday downgraded the long-term debt of Finnish telecommunications equipment maker Nokia by two notches from “BB+” to “BB-” and said the outlook was negative.

Fitch noted in a statement that it had said previously that it would take such a move if the agency “was not convinced that Nokia could stabilise the revenue declines and be   capable of generating positive single digit operating margins in its Devices and Services division.”

On Thursday, Nokia said its second quarter net loss had more than quadrupled on a 12-month basis to 1.41 billion euros.

“Fitch believes that the company does not have products in its current portfolio that can stem the recent losses,” the ratings agency said.

It added that “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.”

The group's debt was initially downgraded to speculative status, “BB+”, by Fitch on April 24.