TOKYO: Credit rating agency Standard and Poor's on Wednesday lowered its rating of Japanese electronics and entertainment giant Sony days after the company announced woeful results.
S&P dropped its assessment of the firm's long-term credit worthiness to BBB+ from A-, citing poor earnings, price erosion, falling demand and stiff competition.
The agency also said its outlook for Sony's long-term corporate credit rating was negative, based on the "view that severe circumstances in Sony's machinery electronics businesses make a strong recovery in earnings unlikely."
"Sony's TV business has made repeated losses since fiscal 2004," the agency said in a statement.
"The company's position in the global market is under strong pressure amid severe competition from Korean manufacturers and emerging Chinese companies."
The agency also warned that it "could lower the ratings further if we see no meaningful sign of a recovery in Sony's earnings within six to 12 months."
Comments
Comments are closed for this article.