Fitch Ratings downgraded bonds of Finland's Nokia Group (NYSE: NOK), citing its declining revenue and earnings, a day after it reported a second-quarter loss of $1 billion, 70 percent above the year-earlier amount.

Fitch lowered its rating on Nokia bonds to double-B minus from double-B plus, with negative outlook, noting the smartphone maker may not be able to resume profitable operations soon.

"Nokia doesn't seem to have the products in its portfolio to stem the recent losses," the rating agency said. The company also faces restructuring charges for firing employees and closing factories and research centers.

Nokia Thursday reported selling 4 million new Lumia smartphones, twice as many as expected.

Nokia's American Depositary Receipts fell 14 cents, or 7.5 percent, to $1.71, in Friday trading.

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