Ratings agency Moody’s downgraded its rating on Nokia to “junk” status, with peer Fitch Ratings also warning that it is likely to review its position, after the Finnish company last week said that its Q2 results are set to disappoint.

In a statement, Moody’s said that Nokia’s latest restructuring plan “delineates a scale of earnings pressure and cash consumption that is far larger than we had previously assumed.”

It did issue one positive, however, noting that “Nokia’s commitment to decisive restructuring is positive and necessary to return the group to profitability.”

Fitch Ratings said that while it expected Nokia to face pressure which would “erode the company’s cash cushion to a certain extent,” and that it had taken this into account during an earlier ratings review, “continued strongly negative operating cash flow generation is not consistent with the current rating level as it puts too much pressure on this cash cushion.”

The agency said: “While Fitch recognises that these savings are credit positive and will help the company return to positive operational cash flow, Nokia needs to stop the revenue declines. Although the cost-cutting provides some relief, ultimately the company needs to demonstrate that its products are attractive to consumers and can enable it to win back market share. Nokia’s comments about its Q2 performance suggest that the company is not yet on this path.”

Earlier this year, Moody’s, Fitch Ratings, and third agency Standard & Poor’s alll downgraded Nokia’s credit ratings.

Nokia last week said that it is planning to “significantly” reduce operating expenses in its core Devices & Services unit, with substantial job cuts and a reduced manufacturing footprint.