Friday, November 23, 2012
Fitch cuts Sony, Panasonic debt to junk
Fitch Ratings downgraded Sony and Panasonic debt to junk status Thursday and said the ailing Japan-based consumer electronic makers both needed radical restructuring to improve their prospects.
Panasonic's rating was cut to BB from BBB-, while Sony was moved to BB- from BBB-, with a negative outlook. Both companies now carry speculative, or junk, ratings.
The downgrades are the latest in a string for Sony and Panasonic, which have been haemorrhaging money and struggling to find positive momentum.
The companies, once the crown jewels of the high-tech Japanese economy, have been hit in recent years by a strong yen and weak demand for televisions. Sony now has a market cap of just more than $10 billion, and hasn't turned a profit in four years. Read more >>