Ratings agency Standard & Poor's on September 25 lowered its long-term credit ratings on Sony by one notch, citing a slow recovery of its mainstay consumer electronics businesses. The agency downgraded its long-term corporate credit ratings on the Japanese electronics giant and its subsidiaries from 'BBB+' to BBB. The move keeps them two steps above junk status.
However, the outlook on long-term corporate credit ratings is negative. "The pace of recovery in earnings of Sony's mainstay consumer electronics businesses in fiscal 2012 (ending March 31, 2013) will remain slow," Standard & Poor's said in a statement.
"And a strong recovery is not likely to occur until at least fiscal 2013," it said. "We could lower the ratings further if Sony fails to demonstrate solid signs of recovery in weakened measures of its credit quality within the next 12 months."
The Japanese firm lost a whopping 456.66 billion yen ($5.81 billion) in the year to March, its fourth consecutive annual loss.