Moody's Investors Service on Friday downgraded the issuer and long-term senior unsecured bond ratings of Sony Corp. (SNE: Quote) to Baa2 from Baa1, considering Sony's weak profitability and cash flow, its challenges in achieving profitability in the TV and mobile phone segments, and the erosion in its global competitive position across various product lines.
According to the credit ratings agency, weak consumer sentiment, fierce global competition and the impact of the strong yen on cost competitiveness will further hamper the Japanese consumer electronics company's efforts to improve its metrics.
At the same time, Moody's confirmed the Prime-2 short-term ratings of Sony and its supported subsidiary, Sony Global Treasury Services Plc. The ratings outlook is negative.
These actions conclude the review for downgrade initiated on August 6.
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by RTT Staff Writer
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