PDA

View Full Version : Sony's credit rating heads toward junk pile


News
11-09-12, 03:40 PM
Just over a week ago, we reported that Sharp, one of Japan‚??s biggest electronics firms, may be set to go under (http://arstechnica.com/business/2012/11/sharp-says-there-is-material-doubt-over-its-corporate-survival/). We also noted how other Japanese tech mega-corporations, including Panasonic and Sony, aren‚??t doing too well either. After Sharp posted its most recent loss, its financial rating fell to junk status, and the company is now seeking a government bailout (http://www.businessweek.com/news/2012-11-06/sharp-needs-viable-plan-before-any-bailout-ldp-policy-head-says). Panasonic was also hit with a near-junk rating (http://www.nasdaq.com/article/moodys-reviews-panasonics-ratings-for-downgrade-on-poor-demand-competition-20121101-00002#.UJ0DcoWmBsQ) by Fitch (http://www.fitchratings.com/web/en/dynamic/fitch-home.jsp) earlier this month, after it posted a loss 30 times larger than analysts had estimated.

Now, Sony‚??the biggest of Japan‚??s big dogs‚??can‚??t escape the bad news (http://arstechnica.com/gaming/2012/11/vita-sales-continue-to-disappoint-as-sony-scales-back-expectations/) either.¬*On Friday, Moody's downgraded (http://www.moodys.com/research/Moodys-downgrades-Sony-to-Baa3-outlook-negative--PR_259577) Sony‚??s long-term debt rating from Baa2 to Baa3, one notch above junk status. This marks the second time in a month (http://www.totaltele.com/view.aspx?ID=477657) Sony has been hit with a downgrade.

"Without robust restructuring in the coming 12 to 18 months, Sony's non-financial services businesses will at best achieve roughly break even, and are also at risk of remaining unprofitable," the rating agency said in its report.

Read 5 remaining paragraphs (http://arstechnica.com/business/2012/11/sonys-financial-rating-falls-to-just-above-junk/) | Comments (http://arstechnica.com/business/2012/11/sonys-financial-rating-falls-to-just-above-junk/?comments=1#comments-bar)



http://feeds.feedburner.com/~ff/arstechnica/index?i=QQNhfPxrz4A:J2RL2iw-ZbM:V_sGLiPBpWU (http://feeds.arstechnica.com/~ff/arstechnica/index?a=QQNhfPxrz4A:J2RL2iw-ZbM:V_sGLiPBpWU) http://feeds.feedburner.com/~ff/arstechnica/index?i=QQNhfPxrz4A:J2RL2iw-ZbM:F7zBnMyn0Lo (http://feeds.arstechnica.com/~ff/arstechnica/index?a=QQNhfPxrz4A:J2RL2iw-ZbM:F7zBnMyn0Lo) http://feeds.feedburner.com/~ff/arstechnica/index?d=qj6IDK7rITs (http://feeds.arstechnica.com/~ff/arstechnica/index?a=QQNhfPxrz4A:J2RL2iw-ZbM:qj6IDK7rITs) http://feeds.feedburner.com/~ff/arstechnica/index?d=yIl2AUoC8zA (http://feeds.arstechnica.com/~ff/arstechnica/index?a=QQNhfPxrz4A:J2RL2iw-ZbM:yIl2AUoC8zA)
http://feeds.feedburner.com/~r/arstechnica/index/~4/QQNhfPxrz4A

More... (http://feeds.arstechnica.com/~r/arstechnica/index/~3/QQNhfPxrz4A/)