Unprofitable TV and PC business drives down investment grade rating.
Sony has once again had its bond rating downgraded to “junk” status as Moody’s Investors Service issued a note of caution to investors Monday, warning that its “uncertain how the company will maintain its competitiveness.”
Sony’s ratings has been lowered from Baa3 to Ba1, which is one level below investment grade. Standard & Poor’s rates Sony’s credit at BBB, which is two notches above junk.
Although Sony has a definite edge in the next-gen console war and its Xperia smartphone line is growing, the rest of the company’s consumer electronics divisions have faced fierce competition from Korean and Chinese rivals. This is the second time that Sony has had its bond rating downgraded. In November 2012 Fitch downgraded Sony on a belief that its “loss of technology leadership in key products and high competition” would hurt its recovery.
Speaking to The Wall Street Journal, Bank of America Merrill Lynch analysts expect Sony to withdraw from the PC business due to continued losses in the sector.
Sony is now led by former Sony Computer Entertainment chief Kaz Hirai, who took over from former president and CEO Howard Stringer in 2012.
Sony’s shares are currently at $16.29 in New York, down three percent in Monday morning trading.
Source:
Read More: http://ift.tt/1eawors
via Hardware Forums http://ift.tt/L2gNPh
No comments:
Post a Comment