Ratings firm Standard and Poor's on Friday dropped Nokia's rating to "junk," which basically means the company has put Nokia at the lower-end of its credit rating spectrum. "We now expect Nokia to report significantly lower margins and cash flows in 2012 than we had previously expected," S&P said in a statement obtained by AllThingsD. "The outlook is negative, reflecting the possibility of a further downgrade if Nokia fails to stabilize revenues and margins and significantly cut its cash losses." S&P said it expects Nokia to earn revenue from its newest line of Lumia smartphones and that the revenue should grow, but "not sufficiently to offset a rapid decline in revenue from Symbian-based smartphones over the next few quarters."

Perhaps Nokia's former Senior Vice President of Symbian Series 60, Lee Williams was on to something when he suggested the firm's decision to gravitate from Symbian smartphones to Windows Phone devices was a bad move. "When I was at Nokia and we shipped a Symbian product and it was bad, in its worst incarnation we knew that if we just flipped the switch, we could move 2.5 to three million units — overnight, no matter how bad the product," Williams said. "And now look at it — they flipped the switch and oh, 200,000 [Windows Phone] units out of the gate. Huh? Only selling in the US, under AT&T's moniker. If you can't flip the switch like that, Nokia's dead and devalued."

Nokia also officially lost its crown as the global leader of phone sales on Friday when Samsung announced that it shipped 93.5 million phones during the first quarter of 2012. Nokia, by comparison, shipped 82.7 million phones during the quarter.

[via AllThingsD]