THE MOVE: Standard and Poor's on Friday downgraded Nokia's credit rating by one notch and warned that it may reduce it again unless the company's performance improves.

RECENT EVENTS: Nokia Corp. last week posted a huge first-quarter loss and a 30 percent drop in sales, and a report earlier Friday estimated Samsung Electronics Co. had overtaken it as the world's largest maker of mobile phones.

SQUEEZE: The Finnish company is fighting fierce competition from Apple Inc.'s iPhone and other smartphones makers, including Samsung. It is also losing share on cheaper phones to Asian manufacturers such as China's ZTE.