Sony’s Credit Rating Cut to Junk

Moody’s said it expected earnings from Sony’s core businesses to continue to face “significant” downward pressure.

It said it was especially concerned about the firm’s TV and personal computer (PC) business, both of which face “intense” global competition.

Sony, which has been struggling for some time now, lowered its full-year profit forecast by 40% in October.

It said at the time that it expected to make a net profit of 30bn yen ($290m; £177m) in the financial year to 31 March 2014. That was down from its earlier projection of 50bn yen.

“The rating actions reflect Moody’s view that, while Sony has made progress in its restructuring and benefits from continued profitability in several of its business segments, it still faces challenges to improve and stabilise its overall profitability,” Moody’s said in a statement.

Moody’s downgraded Sony’s rating to Ba1 from Baa3.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza