S&P puts Sony on negative credit watch

Standard and Poor's on Friday put Sony Corp on a negative credit watch after the Japanese electronics giant warned it expected to slide to its fourth straight annual loss. The US rating agency placed its "A-" long-term corporate credit and senior unsecured debt ratings on Sony on watch with negative implications.
"The likelihood of Sony's weak earnings persisting has increased as there are no signs of a halt to the deterioration in the earnings of the company's core flat panel TV business," S&P said. "In addition, Sony's financial burden is likely to increase in tandem with the company's making Sony Ericsson a wholly owned subsidiary," it said. "We need to review the prospects for Sony's operating and financial performance."
On Wednesday, Sony projected an annual net loss of 90 billion yen ($1.15 billion) reversing a July forecast of a 60 billion yen net profit, after the company slumped into the red during the first-half. The Tokyo-based maker of PlayStation consoles and Bravia television sets has struggled under the weight of a strong yen, while wrestling with the aftermath of the March earthquake and tsunami and now Thailand's floods that have hit production.