Sony suffers Moody's downgrade

Credit rating agency Moody's cut Sony Corp's long-term ratings on Wednesday and said the rating outlook was negative, citing slowing growth, price declines and a strong yen.

Sony, which has forecast a second straight year of annual losses and announced aggressive restructuring plans, follows other high-tech exporters Toshiba Corp and NEC Corp in being hit with a credit rating downgrade.

Moody's cut Sony to an A3 from A2, saying that the global economic crisis may make it difficult for the Japanese electronics giant to boost sales and profit margins of its high-end products.

"Major electronics products have been commoditized to a large extent, and there is limited room for technological innovation," it said in a statement.

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movement19573339d ago

Sony needs a boost in profits soon or they may go the way
that SEGA did. Sony makes the best hardware and some of the best games out there we need to stop buying used games from GameStop and only buy new games so Sony can make the proper share of its game business. We need to keep our used games and only buy new games or we will pay for it in the near future... its in our hands to decide to fate of the company we all love.