Standard & Poor Ratings Services announced today that it is downgrading Japan's Sony Corporation to 'BBB+' from 'A-' and removed the ratings from CreditWatch. The agency said that the long-term outlook for Sony looked grim, with little hope of improving.
Sony faces low earnings, a massive erosion of prices, falling demand for its last generation console platforms and low demand for its new products, which are struggling to compete against the likes of Nintendo, Samsung and other competitors in its mainstay products.
S&P reports that they could lower Sony's ratings even further if they "see no meaningful sign of recovery" in the company's earnings within six to 12 months. Sony's net losses began since fiscal 2008 and the profitability of the company is significantly weaker than that of its industry peers.
Source: Reuters
