It's not a good day for Motorola: its long-term corporate credit rating was lowered to junk status by Standard & Poor's, CNET News reports, as the company continues to endure declining cell phone sales.

The ratings service dropped its score for Motorola specifically because of the trouble the handset part of the business has seen for the past two years.

"The problems are so grave at the company, which reported huge losses for the third quarter, that Motorola is delaying its planned spinoff of the handset division and restructuring the entire business in the hope that it can finally create products that will excite consumers," the report said.

Simply put, the company hasn't had a hit phone since the RAZR back in 2004. Motorola also seems to have missed a shift in the industry toward touchscreen devices.