It’s not a very Happy Thanksgiving for Sony execs around America today. Because the ratings agency Fitch downgraded parent Sony’s debt rating to ‘junk’ status. The reason? Weakness in its consumer electronics and TV operations because of the superiority of Apple and Samsung products. (Fellow Japanese tech giant Panasonic also was axed.) This is despite Fitching noting Sony’s “relatively stable” motion picture and music units. The downgrade sent Sony shares tumbling 4.4% in Frankfurt today. And yet Sony stock already has been trading near a 32-year low. Sony’s share price is down 40% so far this year. And this month Sony recorded its 7th straight quarterly loss.

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Related: Sony Q2 – Small Operating Profit, Film Sales Down 3.7%

According to news reports, Fitch downgraded Sony by three notches to BB-minus from BBB- minus, saying meaningful recovery will be slow. The move came after Sony last week announced plans to raise 150 billion yen ($1.82 billion) through the sale of convertible bonds. However, despite Fitch’s action today, twoof the three major ratings agencies still consider Sony investment grade so institutional investors may not be too spooked.

Ripsnorter2
2 years
I too worked at Sony and support mr. Snorter here. The place is lousy with scared, ambitious,...
Ripsnorter
2 years
Given my experience of Sony, both professionally in this business and as a customer of its products,...
LainEverliving
2 years
Frankly, it sickens me that a company that consistently makes a good product and pushes the envelope...