Sony’s Credit Rating Downgraded On Account Of Ongoing Losses

After estimating that Sony's weak earnings are only going to get worse, finance company Standard and Poor's downgraded Sony's corporate credit rating to A- for long term borrowing and A-2 for short term loans.

"The CreditWatch listing is based on our view that 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," Standard and Poor's said in an official statement.

"In addition, Sony's financial burden is likely to increase in tandem with the company's making Sony Ericsson a wholly owned subsidiary. Taking these factors into consideration, we have concluded that we need to review the prospects for Sony's operating and financial performance and verify the effects on the rating."

Sony's business division responsible for both flat-panel TVs and PlayStation has reported a net loss of $449 million in its most recent financial report. This was the third consecutive year in the red for the company, with at least one more year of losses expected.

"Standard & Poor's will resolve the CreditWatch listing after meeting with Sony management and verifying the prospects for an earnings recovery in the company's mainstay electronics business and improvement in its financial soundness for the next few years," the company's statement concluded.

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Comments

sony suxs ball sacks Xbox360 woot

you suck ball sacks Sony. Even the banks think your company sucks major ball sacks. In any case, I'm happy the banks have taken away some of your credit. You shouldn't have all that money to create junk. Now that you have less credit, there will be less junk you can create.

really?

they need to banned anyone not 18 on this site. Sony is a huge company and has a lot of divisions inside Sony. how about their movie studios or ... i am not wasting my time for a kid who thinks ps3 is the only thing that Sony makes and loves spending all its little allowance on a xbox360 every year when it breaks.

LoL

Suddenly the argument turns into consoles? That is a weak argument if you think underage kids need to be kicked. I do agree with your weak point however, Sony is a large company. That is where I depart and add, it is a big company and like all big companies it can fail. Has nothing to do with business and technology, it has to do with economics the steady streams and rise/decline of consistent demand.

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