Sony Credit Rating Cut One Level by Moody’s; Panasonic Is Also Downgraded

By Mariko Yasu - Jan 20, 2012 3:35 PM GMT+0700

Sony Corp. (6758), Japan’s biggest consumer-electronics exporter, had its credit rating cut one level by Moody’s Investors Service on concern that the company will have difficulty turning around its unprofitable TV business.

Sony’s long-term rating was lowered to “Baa1,” the third- lowest among Moody’s 10 investment grades, the rating company said in a statement today. Moody’s also downgraded Panasonic Corp. (6752)’s rating one level to “A2,” the sixth-highest.

“The rating action reflects Moody’s concern that Sony’s earnings will remain weak and volatile due largely to its loss- making TV business, which is grappling with severe competition, sharp price declines, and a strong yen,” according to the statement.

Last month, Fitch Ratings downgraded Sony to one level above junk, citing difficulties reviving a money-losing TV business and deals that won’t improve profit.

To contact the reporter on this story: Mariko Yasu in Tokyo at myasu@bloomberg.net

To contact the editor responsible for this story: Michael Tighe at mtighe4@bloomberg.net